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 the 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.
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.
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.
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.
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.
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!)
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.
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.
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.
This does not apply to buying a vehicle.
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.
You can modify your car in whatever manner you choose, including painting the vehicle and adding any after-market accessories you'd like.
Some would argue that buying a vehicle versus leasing a vehicle is a more economical avenue from a dollars-and-cents perspective in essence; you may pay less for a vehicle during the lifetime of a loan than you do if you lease multiple vehicles over a cyclical period of years.
There is no mileage restrictions associated with buying a car like there are when you lease a car. You can drive as many miles as you'd like without ever having to pay penalties in mileage overage costs.
When you purchase a vehicle outright, you have the flexibility of selling the car whenever you want.
Leasing provides an opportunity for people to drive more expensive vehicles for less money each month.
Leasing allows consumers to drive a new vehicle every few years depending on the length of the lease program.
Most leased vehicles are comprehensively covered under a manufacturer's warranty during the length of the lease, allowing consumers to own a more expensive vehicle without the worry of large maintenance and repair bills.
Unlike owning a vehicle outright at the end of a standard automotive loan, leasing helps consumers avoid the hassles often associated with selling their used car to an independent third party or trading in their vehicle to a local dealer. Instead, you simply turn in your vehicle at the end of the lease term and begin a new lease on a new vehicle; if that's the route you choose to take. It's a simple method some consumers find more attractive than the traditional used car sales or trade-in process.
Interested in buying or leasing a Toyota? View our new Toyota and Ford vehicle inventory in Houlton, today!