The Big Question: Should you Lease or Buy?
When it comes to buying or leasing a car the options can be
confusing. To help you make an informed decision we have provided the
information below. We hope you find it informative and useful.
When you buy a new or used car you pay for the entire cost of the
vehicle. When you lease the new or used car, you pay for only a portion
of the vehicle’s cost, which is the part you use during the time you are
driving it.
Buying
Who Owns It
Whether you pay for the car with cash, or finance it and make monthly
payments, either way it’s yours. Of course, if you’re financing it,
you’ll have to meet the obligations the lender requires, like a certain
down payment amount and timely monthly payments. If you don’t, they have
the right to repossess
it.
Up-front Costs
If you’re financing it, the bank will probably request a down
payment. You can also trade-in another vehicle and use any equity
towards your down payment. The amount of the down payment is usually
based on the lender’s requirements and your credit score.
Future Value
Your vehicle will be worth whatever you can sell it for in the future
and that depends on how well you maintain it. (Be smart and protect
your investment with regular scheduled maintenance by a
factory-authorized facility!)
End of Payments
Once you’ve paid off what you owe on your contract, that’s it. Your
vehicle is 100% yours. The lending institution will send you a Lien
Release as proof that the vehicle is completely paid off and all yours.
Leasing
Who Owns It
You do not own the car when you lease. You’re paying for the use of
the vehicle, but the finance institution that you leased it through
actually owns it. This is usually why you pay less per month in a lease
than if you were to buy the car. .
Up-front Costs
Leases often do not require any type of a down payment. All you
usually have to pay is the first month’s payment, a security deposit,
the acquisition fee and other fees and taxes. But, as with a purchase,
if you want to lower your monthly payments you can always pay more
upfront.
Future Value
In most leases you don’t end up owning it so you don’t end up selling
it. That’s the financial institution’s job. Although you may have
mileage limits and wear and tear guidelines that, if you exceed them,
could cost you extra money when you turn your vehicle back in.
End of Payments
Most people return the vehicle at the end of the lease term. But some
like to purchase it during their lease or at the end. Others like to
trade it in before their lease is over. Just ask us about these
different options before signing any paperwork and we’ll make sure you
have your lease set up
the way you want it.
Best Cars to Lease
The best cars to lease are those with the best book value after the
term of the lease. Since they depreciate less, you pay less. Review the
lease ratings to see which cars retain their value.
Still have questions about what is your best option? Click Here to contact one of our helpful staff members.
Still have questions about what is your best option? Click Here to contact one of our helpful staff members.
