Ask Terry: Bankrate's auto expert answers YOUR questions

By Terry Jackson • Bankrate.com

Terry Jackson is the author of six automotive books and has been writing about cars for 25 years. He is the former editor-in-chief of AMI Auto World Magazine and NOPI Street Performance Compact. His work has appeared in The Miami Herald and The Sacramento Bee newspaper and been syndicated to other U.S. newspapers. He has also written for Automobile, Road & Track and AutoWeek. He races a vintage Mustang in SCCA competition and evaluates as many as 100 new cars each year.

The lease on my Acura RL expires in June. I like the 2005, especially the satellite navigation, a major factor in selecting my present car.

Is it possible I could get a better deal by trading early for a 2005 RL? I haven't checked leasing options this year -- are there specials that make it attractive? Affordability isn't an issue, and I would probably keep the car a long time. With the June expiration date, is it worthwhile for me to consider repurchasing the leased vehicle at that time, and then trading in a few months for either an "end-of-year" 2005, or if there are major improvements, a 2006 model?
-- Barbara Schrader

If you like your current RL, you'll really love what Acura has done to it for 2005. It's an all-new vehicle and has cutting-edge technology, such as Bluetooth wireless capability and real-time traffic displays for the satellite navigation. That's the good news.

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The bad news is that at the moment there are no nationwide lease specials or rebates on the car, in large part because Acura expects it to be a better-selling vehicle than the model you currently have. So don't expect your dealer to be selling 2005 RLs at giveaway bargains.

I would wait until your current lease is up in June and see if the rebate or lease-special situation has improved.

As far as buying your current car, I'd only recommend it under three conditions:

The lease holder was willing to deal down on the residual price specified in the contract, which they might do considering the all-new 2005 RL will make yours less attractive on the wholesale market.
You're going to keep the car at least two more years.
You don't have to take out a loan to buy it (so you're not extending your debt on a car that you've already owned for a while).

I need some car-buying assistance. I currently have a 1997 customized Chevy Astro Van that I love. I enjoy sitting up high and the step-up running boards are a big help with a bad right leg. The only drawback: It's hard to cope with the rear-wheel drive in snow. Have the automakers come up with a van that has the AWD qualities of a SUV? Is four-wheel drive is better than all-wheel-drive?
-- Jean Brasser

Jean,
When it comes to driving in slick conditions, there's no doubt that all-wheel-drive -- a system where the car senses which wheels have the most grip and shifts power to them -- is superior to rear-wheel or even front-wheel drive.

But all-wheel-drive is different than four-wheel-drive that's available on pickups and SUVs. In those vehicles the driver makes the decision to engage the front wheels as well as the rear wheels for added traction. Also, most four-wheel-drive vehicles come with high-speed and low-speed settings, with low-speed being optimal for getting though deep snow or mud, or going up steep, uneven terrain.

For your purposes, it sounds like an all-wheel-drive system would be best. It would be unobtrusive in normal driving, yet provide added traction and security for slippery roads. Just don't expect an all-wheel-drive van to handle deep snow the way a truck or SUV would.

Regarding which one to buy, the Toyota Sienna minivan with all-wheel-drive is the class of the field.

What type(s) of vehicle would you personally recommend for a lady who wants to purchase -- maybe lease -- which is safety-oriented, comfortable and moderately priced? She would like to invest a maximum of $300 per month.
-- G. Miller

G.,
This is a tough question, but I'd like to start by challenging the way you're looking at the issue. If you walk into a dealership and say, "I want to spend $300 a month,'' you're in for a fleecing. By the time they get done running numbers for your trade-in, the term of the loan, the down payment, etc., you may have a hard time determining whether you're getting a good deal.

I also recommend against a lease unless you're prepared to trade after four years and are absolutely -- make that absolutely, positively -- sure you don't drive more than 12,000 miles a year, which is what's allowed in most leases. Otherwise, leasing in the long run will cost you more.

To help decide what you can afford, here are some guidelines: $16,000 financed for 60 months at 5.81 percent equals a payment of 312.53.

So assuming a 20-percent down payment, you should be shopping in the under $20,000 range. Some sedans you should be looking at: the new Chevrolet Cobalt, the Honda Civic, the Mazda 3 and the Toyota Corolla.

I'm curious. Can you tell me why the DVD player is in the trunk of the 2005 Mercury Marquis? What were they thinking?
-- Carol

Carol,
They were probably thinking, "Where the heck can we put new entertainment technology in a chassis that's a decade old? Heck, the trunk's big enough to hold a couple of bodies, so let's put it there."

What are the considerations in choosing a cash-back option or a low financing rate when purchasing a new car?
-- W. Gray

W.,
Unless you absolutely need the help of the dealer to get financed, it's always better to take the cash and get market-rate financing at your bank, credit union or other lender. A word about those zero-percent or other cut-rate loans that manufacturers are offering: They are usually available only to buyers with top-notch credit scores. The more issues on your credit report, the higher the rate.

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-- Posted: Feb. 15, 2005

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