Spring time always seems to put us in the mood for car buying, and there are a few things you need to know before you hit the road in search for a new set of wheels, and joining us this morning is our un-common sense expert and Dallas Morning News columnist Benjamin Dover...

 

Question 1:  Ben, in this morning's column you've gotta letter from someone that's confused about getting hit with the personal property tax on their existing automobile lease; didn't Texas voters vote to get rid of the tax a few years ago?

 

Answer 1:    Yes!  In fact Texas voters passed Proposition 12 in November 1999, an amendment that was supposed to eliminate the personal property taxes on leased vehicles. Unfortunately, the successful election only empowered lawmakers to change the law and didn’t change the actual law itself. Since then, our pals in Austin passed the actual law and eventually, the (Texas) House and Senate and even Governor Perry even signed off, officially ending the tax...but not the confusion.

According to leasing expert, Ray Stafin Sr. of Addison-based Manufacturers Auto Leasing: "He's being billed taxes for the prior year. (Anyone leasing vehicles in 1999 would receive their first tax bill in 2000.) Unfortunately, many banks bill these taxes after the loan has been paid off, since the tax estimate isn’t calculated in the payoff amount.

That’s the bad news but here’s good news: Anyone leasing a vehicle after January 1, 2001 may be exempted from these property taxes, as long as they filled out an exemption form. Many "captive" finance companies (like Toyota Motor Credit) already built these taxes into their payments, but the banks (like Bank One) didn’t, which explains why some people got bills and others didn’t.

 

Throw in the fact that some of the banks got confused on which (types of existing lease contracts) to bill and many bills didn’t even go out. The state requires banks to provide them with a list of leased vehicles every year, but the changes in the laws also changed their methods, adding to the confusion. Today leased vehicles must have an exemption form that states the vehicle is primarily for personal use; business/commercial leases must still pay the property taxes."

 

Question 2:    Ben, you seem to be a big fan of leasing over buying, even though there are some really tempting purchase financing deals out there, the big one being 0% financing.

 

A2:    First off, you've gotta be realistic about these 0% offers.  Very few people will actually qualify for them; they're designed to get people into the game and onto the lots, and no one should be surprised when the salesman says: "Oops! Sorry...you've got a coupla things on your credit report, so we can't get you in on the 0% financing, but we can........." and then they switch you to a higher-rate, and make more money off of your transaction while they're doing it.

 

Question 3:    But you think there's an even bigger motivation for leasing over buying don't you?

 

Answer 3:    Sure. It's called letting the leasing company take the risk and probable hit on the value of the vehicle 3-5 years down the road.

 

Question 4:    What do you mean?

 

Answer 4:    Remember in the old days, when Mercedes Benz didn't change their body style for years on end and you looked at a car and didn't really know how old--or new--it was?  That was the old days: The auto manufacturers might make subtle style changes year-to-year, but nowadays they'll blow out a model in 3 years.  So you're all excited about buying that Lexus RX-300 SUV and then 6 months later, out comes the new RX-330 and the value of your car has just taken a major hit.

 

All of the manufacturers are bringing out dozens of new models every year, and as a result, the consumer takes a much bigger risk of their vehicle being "outdated" long before they've finished paying it off.  That's why I like leasing, because at the end of the lease you can throw 'em back the keys and let the leasing company worry about liquidating the vehicle.  You walk away with zero downside.

 

Question 5:    But isn't the consumer also walking away with nothing?  Leasing a vehicle means you never own it, as opposed to buying...

 

Answer 5:    Yes, and no. If you're the type of person that holds on to a vehicle forever, or you hate to have payments, then you're right, buying is the way to go.  But Americans are notorious for wanting "something new" to drive, and more importantly, something new means something "in warranty".  You might end up owning a vehicle in 4-5 or even 6 years, but you'll also have the responsibility of the inherent maintenance challenges that come with driving an older vehicle. 

 

Ben's Bottom Line?  You should never "invest" in a car or truck or SUV, because it's almost always a losing investment.  You hopefully invest in things that go up in value, and automobiles rarely fall into that category.  I'd rather drive a new vehicle that  with a warranty intact every 3-4 years than sign-up for 5-6 year's worth of car payments and the chance of big repair bills that come with it.

 

Question 6:    One of the biggest ongoing challenges for consumers, whether they're out trying to buy or lease a net vehicle or not, is getting a handle on their credit reports.  You've gotta free seminar coming up on Saturday and one of the big topics you'll be covering is de-mystifying our credit reports.

 

Answer 6:    Yes!  Let me be clear that the seminar is free, but space is limited so folks will need to sign-up to reserve their spot.  But this year we're gonna do something different and we'll let attendees get some one-on-one credit report counseling.  If they're interested in this, it'll cost 'em $10 to pull a credit report and then spend some quality time with experts that can take them through their report line-by-line and explain the good, the bad or even the ugly.

 

Question 7:    There are things that people can do right now to improve their credit scores, isn't there?

 

Answer 7:    Absolutely.  But wading through and interpreting credit reports can be so intimidating, that's why we'll have experts on-hand to take folks by the hand...it's $10 per person for this extra service.  Otherwise, there's no charge for the seminar itself and all of the stuff we'll be covering:

 

Under the hood: When and where (and even more importantly, where not) to service your vehicle and still keep your warranty intact.
 

Car buying credit: A constantly changing category–we’ll focus on what the banks look for and what you can do right now to help yourself.
 

Leasing versus buying: Why you should lease and when you should buy–and what to do if you’re over (or even way under) your allowed miles.
 

Financing 2004: Sorting through those confusing incentive/rebate or 0% interest financing offers, how to save the most dough and even how to drive your way out of a bad current loan/lease balance.

 

Question 8:    Okay folks, you can sign-up on-line by going to Ben's award-winning website or call (972) 960-1234.

 

Answer 8:    I need to emphasize that it's filling up fast and we're limiting it to only 50 people per seminar.  The morning session starts at 10 a.m. and the afternoon session starts at 1 p.m.  It's absolutely free, but you've gotta sign-up to reserve your spot.  

Alan Greenspan says interest rates are gonna have to go back up: "They're too low for long-term economic stability," Fed-speak for expect upticks in key rates that'll trickle-down to the mortgage rate world as a result. 

Q: What's worse than moving?  A: Easy...hiring a buncha rogue movers!  It's simple to avoid the outlaws if you know what questions to ask.  Here you go.....

Will 2003 go down as the year of living dangerously for U.S. consumers?  Are Americans optimistic or fatalistic when it comes to borrowing? 

 

 

Speaking of reckless lending, you can't miss this expose from Sunday's New York Times about the man that built MBNA into one of the biggest legal loan-sharking operations in the history of credit cards: Never forget. It takes two to create credit problems.....

What's this?  Grandma or Grandpa...living in sin?  Shacking up's not just for young punks anymore, and the trend is creating a tidal wave of legal fallout that nobody talks about on their way to pick-up that Viagra refill.....

Know how to find a new landlord that'll not only give you free rent, but will even move you for free?  Simple...and only one click away.....

Are you a good actor?  You don't have to have a SAG card to make a stack of cash!  In fact if you can convincingly fake a heart attack, you could make millions of dollars!  (Here's how.)

 

 

Got some unused gift cards lying around the house?  Convert 'em to cash, or at least something more usable.....

Looking for a reliable source for all types of jewelry or watches?  Learn how to avoid getting hosed...check out Ben's diamond/jewelry buying tips...all assembled in one easy-to-reference section.....

Profits are up at the Golden Arches and Ronald's gotta strategy to shrink America's waistlines: Sounds more like a desire to avoid McLitigation about all of the McFat in their McCrappy fast-food.....

Here are 10 hot tips that'll help you avoid getting the hairy-eyeball from the IRS spotlight: Worth noting since April 15th is now 35 days away.....

Looking for new tax deductions?  How would you like to deduct the entire amount of your wages?  You can call it "a necessary expense for the production of income" and write it all off:  Of course you'll be guaranteeing fan mail from our pals at the IRS.  It's the latest tax scam popping up this year...read more about it here.

Do you know someone with "anger" issues?  Don't give 'em Prozac, give 'em Charlie the Tuna instead.  Here's why.

Those wacky Amish!  America's favorite horse-and-buggy types are about to give Paris Hilton a run for her reality TV money.....

Just a reminder Easter Sunday (April 11th) is just 31 days away: Why not do something original this year that'll score you some points. Send some beautiful flowers instead of the usual wimpy Easter lilies.  They'll last at least twice as long...and of course I'm talking about those amazingly affordable flowers, FedEx-ed direct by our friends at www.tropicalcolors.com

Is our government now censoring cartoon characters? Why does the FDA have Britt Reid (martial arts expert Bruce Lee's former boss) on their hit list?  Read all about the latest ban from America's health-related watchdog organization.....

 

 

From the "please turn on your spellcheck function" files: Read about the typo-prone lawyer who got his fees chopped down to size by a judge tired of reading his garbage.

Need cheap health insurance? Don't throw your precious dollars at insurance companies offering "seems too good to be true" policies!  I've warned you about these scams for years, and a recent report from the General Accounting Offices confirms yet more verifiable occurrence of NostraDover predictions coming true.....

 

 

They started out making fake Rolexes, then moved on to fake Louis Vutton purses and fake pharmaceuticals. If you drive any type of vehicle, you'll wanna read more about the newest area of counterfeit commerce.....

Speaking of spare parts, you can thank the Boys in Blue from L.A.P.D. for the fact that there's one less source for extra hearts, kidneys, corneas, etc. in sunny Southern California: I guess authorities don't embrace a little entrepreneurial creativity at the morgue. So much for trying to make a little extra money on the side.....

Is that a roll of nickels in your pocket or are just happy to see me?  The U.S. Mint just released the first revision of America's favorite (okay, only) 5 cent piece, a tribute commemorating the purchase of that third-world nation known as Louisiana.....  (I wonder why they'd miss the obvious chance to put one of that state's most beloved public figures on the new nickel???)