When it comes to buying or leasing your next car, truck, van or SUV the options can be confusing. To help you make an informed decision we have provided the below information, we hope that you find it informative and useful. When you buy a new or pre-owned vehicle, you pay for the entire cost of the vehicle. When you lease the new or used vehicle, you pay only a portion of it's cost, which is the part that you use during the time you are driving it.
If you choose buy your vehicle, whether you pay for the car with cash or make monthly payments, either way it is yours. Of course when you are financing, you will have to meet the obligations of the lender such as a down payment and monthly payments. If you do not follow through, they have a right to repossess it.
If you go with the leasing option, you do not technically own the vehicle. You are basically paying for the use of the vehicle. The finance institution that leases it to you is the actual owner of the vehicle. This is why your monthly payments are less than if you were to purchase the vehicle.
When financing your next vehicle, the bank or financial institution will most likely request a down payment. You can also trade-in your current vehicle and use any equity towards the down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.
If you choose to lease, they often do not require any sort of down payment. The general requirement is the first monthly payment, a security deposit, the acquisition fee and any other taxes or fees involved. But as with any purchase you may want to lower your monthly payment and pay more upfront.
When you purchase your vehicle, the value depends on the amount htat you will be able to sell it for, generally based on how well it was maintained. Be smart with your purchased and follow the scheduled maintenance plan provided by the manufacturer.
In most leases, you do not end up owning your vehicle so you will not be responsible to sell it. That is the financial instititution's job. However, you may have mileage limits and wear and tear guidelines that, if you exceed them could cost you extra money when the lease is up.
Once you have paid of your purchased vehicle that is it! The vehicle is 100% yours. The financial institution will send you a Lein Release as proof that the vehicle is completely paid off and is all yours.
When you have leased your vehicle, most people will turn it in at the end of the term. Others like to trade it in before the lease is over. If you decide to trade it in, inquire with a member of our financing team for details before you sign any paperwork.
As always, if you have additional questions on the options available we are here to help. Just give us a call, or fill out our simple online credit application to get started.