Leasing provides an alternative way to drive a new vehicle without having to finance. With all the benefits that leasing has to offer it's definitely worth considering.
What is leasing?
Leasing allows you to drive off the lot with a new car at a lower payment than a traditional installment loan. Monthly payments are applied to the depreciation and use of the vehicle, not the actual purchase. This is how you get lower payments. At the end of the lease term, you can either return your vehicle or purchase it from the lessor at the pre-set residual value.
We can custom tailor lease payments and terms to your desired needs, as well as adjust the mileage allowed during the lease term.
Lease vehicles are usually covered under the factory warranty for the entire duration on most short-term leases.
What are the up-front costs associated with leasing a new vehicle?
At the beginning of the lease, you may have to pay your first monthly payment; a refundable security deposit or your last monthly payment; other fees or license, registration, and title; a capitalized cost reduction (like a down payment); an acquisition fee; freight or destination charge; and state or local taxes.
What are the long-term costs associated with leasing a new vehicle?
During the lease, you will have to pay your monthly payments; any additional taxes not included in the payment such as sales, use, and personal property taxes; insurance premiums; ongoing maintenance costs; and any fees for late payment. You'll also have to pay for safety and emission inspections and any traffic tickets (not unlike owning or financing your vehicle). However, if you terminate your lease early, you may have to pay substantial early termination charges.
Why would I want to purchase my vehicle instead of leasing it?
Buying a vehicle is an investment that you can enjoy in the long term. Although the monthly payments can be higher than a leased vehicle, it becomes yours to keep at the end of the financing term!
Value depreciation does come into play when you're ready to sell or trade in, but with owning your vehicle comes many benefits. You aren't tied down by mileage restrictions, and you are free to customize your vehicle as you please. If you're ready to commit to a vehicle for years to come, purchasing would be a great option.
To learn more about leasing vs. financing, contact our finance experts today at (888) 485-6105 or fill out the form above.