are many options when it comes to financing a new or used vehicle and we understand
it can sometimes seem overwhelming. To make it easier for you we have put
together some basic details on the main options to choose between. We hope you
find the information valuable and use it to make an educated decision on the
best choice for you.
Before we get in to the details, let's
get the basics squared away. You have two main options for the
vehicle of your choice; you can either buy the vehicle or lease it. If you buy
the vehicle, you then have another two options of either paying the full price
of the vehicle upfront or paying for the vehicle over a fixed period of time by
financing the vehicle.
When you buy the vehicle, you pay
the full cost of the vehicle (either upfront or over time) and then become the
owner of that vehicle. When you lease the vehicle, you only pay for the portion
of the vehicle during the time that you actually use it and don't actually own
Who Owns It Whether
you pay for the vehicle with cash, or finance it and make monthly payments,
either way you own it. Of course, if you're financing it, you will have to meet
the obligations the lender requires, like a certain down payment amount and
keeping your monthly payments on time. If you don't, the lender may look to
take ownership of the vehicle to replace their
Costs If you are financing it, the lender
will often 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
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 our
of Payments If you are financing, once you
have paid off what you owe on your contract - that's it! You retain 100%
ownership of the vehicle and it's yours to do with as you will. The lending
institution will send you documentation as proof that the vehicle is completely
paid off and all yours.
It You do not own the vehicle when you
lease, the financial institution that you leased it through actually owns it.
This is why you pay less per month in a lease than if you were to buy the
vehicle. Instead, you are paying for the use of the vehicle during the time
that you have it instead of the entire cost.
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 any
other applicable taxes and fees. However, similar to financing, if you want to
lower your monthly payments you can make a larger down payment initially.
Future Value In most
leases you don't end up owning the vehicle so you don't have to worry about selling
it at the end of your term, 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
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 and switch to a different leased vehicle. 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 vehicles to Lease The
best vehicles to lease are those with the best value after the term of the
lease, since they depreciate less you pay less. Review the lease ratings and
speak to our helpful staff to see which vehicles retain their value and would
be a good choice for you.