Buy vs. Leasing

Auto Lease vs Buying  a Car Aberdeen, WA.

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.



Buying

Leasing

Who Owns It?

Whether you pay for the car with cash, or finance it and make monthly  payments, 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.

Up-front Costs

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.

Future 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 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.

End of Payments

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.

Best Vehicles to Lease

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.

 
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