Auto Transportation

Posts Tagged ‘basis’

The Automotive Hall of Fame was originally founded on October 18, 1939 in New York City by a group of men that had devoted their lives to the automotive industry. They met in New York City with the intention of creating an organization that would forever perpetuate the memories of the early automotive pioneers as well as the leaders in the industry at the time. The original organization was known as the ‘Automobile Old Timers’ and has since had its name changed to the Automotive Hall of Fame. The organization is dedicated to honoring automotive people from all of the industries segments and from around the world.

The Automotive Hall of Fame was originally based in Washington D.C. but has since moved and made its permanent home in Midland, Michigan. Midland is roughly 120 miles out of Detroit, the hub of the automotive world in the United States. The organization moved to D.C. in 1960 and then left for Midland in 1971. The first Automotive Hall of Fame building was constructed in Midland, Michigan in 1975.

After 22 years in Midland, the Automotive Hall of Fame decided to move once again. This time, in 1997, the organization moved to Dearborn, Michigan. Since its inception over 60 years ago, the Automotive Hall of Fame has enshrined over 200 members that include pioneers from Benz, Bosch, Bugatti, Chevrolet, Chrysler, Citroen, Daimler, Dodge, Durant, Duryea, Ferrari, Ford, Honda, Maybach, Olds, Peugeot, Porsche, Renault, Sloan and Toyoda. The Automotive Hall of Fame welcomes nearly 30,000 visitors on a yearly basis.

There are four categories recognized by the Automotive Hall of Fame. Those four categories are induction, the distinguished service citation, the industry leader of the year, and the young leadership and excellence award. To become an inducted member in the Automotive Hall of Fame that person must either be retired from the industry or deceased. The Hall of Fame’s standards say that that person “must have significantly impacted the development of the automobile or the motor vehicle industry.” Usually there are anywhere from four to eight members inducted each year.
The distinguished service citation is the organization’s oldest award and was initiated in 1940. To win this award, one must either be employed in the industry or recently retired. Anywhere from five to six people are given this award each year. The industry leader of the year award is given to one individual each year that demonstrates outstanding industry leadership. The fourth award, the young leadership and excellence award, is awarded to people in the industry 35 years or younger. The award is given out annually and is awarded to only four people. The purpose of the award is to recognize the future of the industry and its next generation of leadership within the industry.

Anyone can nominate candidates for each award by simply logging onto the Automotive Hall of Fame’s website. The Automotive Hall of Fame is operated by a Board of Directors currently headed by Chairman Jason Vines who is the Senior Vice President of Communications for the Compuware Corporation. There are also two vice chairmen, a treasurer, a secretary, executive directors, a president, directors, and directors emeriti.

Is leasing a car, rather than purchasing a car on time payments a good thing or not. As with questions in life, it all depends on your financial and/ or automotive situation and as well who tells the story.

It is true that business can write off lease costs whereas that is not such an advantage to an individual car user. However this is not necessarily so. First it all depends on your situation and as well you’re negotiating skills. It is always better to be in an informed and prepared manner.

First of all leasing a car is downright attractive due to current low interest rates. Almost every month you will read in the popular news that the “Fed has cut interest rates again”. What this means to you is that in an overall sense that interest rates are less to you. This should mean lower leasing costs to you. If interest rates, in the banking industry and market are lower, so should be the interest rate basis in your lease negotiations and payments.

What are the advantages of leasing a vehicle? You will get a new vehicle to drive. When your leasing agreement term is over – then you hand the car in and walk away.

It may be debated that by leasing the car you will have no equity or asset accumulation left at this point in this automotive transaction. If you had bought the car, with payments, the car would be yours at some point, lock stock and barrel.

However major components and overall costs of running a car are maintenance costs. With a new vehicle – it is unlikely that you will incur these costs. First of all the car is new. Major repairs and costs are unlikely. In addition the car will come with a manufacturer’s warranty which should cover you for the majority if not all of the lease time period.

With modern, newer and especially smaller cars it seems that all repairs seem to be very expensive. After a certain point of time, use and mileage, it is not as if the car “nickel and dimes” you to death. Most of the innards of modern cars seem to be electronic in nature with advanced (read expensive and hard to fix) modules. There are few simple to repair mechanically based, non electronic component, cars. In addition for mechanics to work on cars now “everything is struggle’ “and as well spaces are tight and very hard to work within. In a summary the old “nickels and dimes” are now “five hundreds, thousands and several thousands”. With a leased car arrangement you may not own the car, with its equity. Neither do you have repair costs and heartaches. In addition you have a reliable vehicle to get you to work or to chauffer around your family.

There are several terms and factors to be knowledgeable about in your calculations and comparisons for auto purchase versus lease workup and lease negotiations.

First of all research the leasing tax rules in your jurisdictions. For example in your state you may well only pay sales taxes on monthly payments, not on the cost of the vehicle. It all depends on the negotiations of your payments- which involve the time frame and value of the car at the take back time end of lease.

Next what are the fees? For example the fee at the end of turn in, paperwork fees and fees for “excess miles”. Are these negotiatiable? In the case of the “excess mileage” and “excess mileage fees” are these carved in stone or can the allotment or rates charged be reduced? In the case of the “turn in” fee. If you offer to increase your monthly payment – often this fee will be reduced.

In order to best negotiate you will have to speak the same language and terms as the lease negotiator. Several terms to know, comprehend and understand are “Capitalized Cost”, “Money Factor” and “Residual Value”.

Simply put the cost of the leased vehicle is confusingly described as the “Capitalized Cost”. Just as you would haggle over the cost of buying a new car, you should not accept a stated price or manufacturers suggested retail price (M.S.R.P.) as the price paid.

Haggle and argue over the “Capitalized Cost” just as you would in any car or automotive deal.

Next in line in proper automotive leasing terms is the term “Money Factor”. “Money Factor “is the interest rate upon which the leasing calculations are based upon. The lower the number of the “Money Factor”, the better for you. As a rough guide and estimate multiply the “Money Factor” value by 2550 to get an estimate of the relevant interest rate.

Last in the line of leasing and leasing lingo is the term “Residual Value”. “Residual Value” is the amount that the car, S.U.V. or truck vehicle is said to be worth at the end of the lease period. Simply put, the more the vehicle is deemed to be worth, at this time period, the less will be your total amount due to be paid overall for your lease. Thus the higher the “Residual Value” at the end of your lease, the much lower will be your monthly lease payments.

In the end, your car purchase or lease decision will come down to two factors. Reliability of transportation and the total cash outlay from your personal pocketbook or wallet.