Lease Vs Finance
Lease Vs Finance – I’ve been in the auto industry since I was 19 years old. I started as a young salesman and worked my way into upper management at an early age. So far I’ve enjoyed my career as a “used car salesman”, haha. I think everyone would agree it’s been a tough economy for the past few years, the banking industry, the job market, it’s been down right tough on everyone. That being said, it seems over the past year that things have smoothed out a little in the auto industry, and seem to be on the upswing. Slot Game Online.
One thing that is becoming increasingly more popular, and I believe has had a significant effect on this upswing is leasing. I’d like to share some knowledge with you and offer my experience. I am an advocate for auto leasing; however, I understand it’s not for everyone. So keep an open mind, if it’s not for you than at least you can make that decision with some knowledge in hand as opposed to listening to your uncle, buddy, co-worker, or the “know it all” who in reality knows nothing about the subject. Lease Vs Finance. Slot Game Online.
Lets talk about some obvious benefits
More times than not your payment on your new car will be less on a lease than it will on a finance. Your contract term will be shorter generally 24, 36, 48 months on a lease vs. 60, 66, 72 months even 84 months on a finance. This requires a lot less of a commitment on your part and I recommend not going over a 36 month lease, anything more and it kind of defeats the purpose. So what’s all this mean to you? Less out of your pocket, maybe a nicer car than you could normally afford, or a new car every 2 to 3 years. At the very least a few more options that many people would love to have had. If this had been explained up front and they were given the option. Slot Game Online.
From my experience people like to trade their cars before they are paid off. Well before they are paid off. The rule of thumb is 42 months on avg for most people. Thats when most people on average like or try to trade out of their car. They had a baby, they need better gas mileage, they want the newest model. What ever the reason many times they are unable to trade out. Slot Game Online.
Lets assume you lease a car
After your 36 month term has matured you decide you’ve enjoyed the car and would like to keep it. What most people fail to realize you can finance the balance for another 36 months for nearly the same payment and at the end of that term the car is yours. You just bought the car and paid it off in a traditional 72 month finance term. The only difference is you had the option half way through to return the car just in case you wanted something different. AND, odds are your payments were probably a little less expensive. Slot Game Online.
Here are a few things to consider. Mileage. Many people think they drive too many miles to lease a car. If you drive more miles you can always purchase more miles up front usually for.15 cents per mile. Every mile you go past your mileage allotment you will be charged a fee per mile,.20 cents is the norm. Now there are two ways to look at this. You could be out of pocket.20 cents per mile or you could be out the depreciation of the extra miles and take that hit in your trade value. Slot Game Online.
How about that, none of the risk all of the benefits. For once you have options. There aren’t a lot of differences between a lease or fiance. The sales price can still be negotiated. You can trade in your current car even if you owe money on it. You have the option depending on your situation to put money down or not to. Maintain your car the same way, you put insurance on it, repair it if you damage it. In a nut shell a lease isn’t a bad thing. It’s just a different way to buy a car. Slot Game Online.
As I said before, it may not be your cup of tea. But maybe you have a few things to think about the next time your in the market to buy a car. In closing, remember every situation is different. A lease isn’t always the way to go, but be sure to ask for a comparison between the two. Go with the option that makes the most sense for you. Slot Game Online.