When it comes to buying or leasing a car, the options can be confusing. We have provided the information below to help you make an informed decision. Please do not hesitate to call or stop in with questions that require more details.
Who Owns It
If you pay for the car up front, your title (certificate of ownership) will come to you from the DMV in around 6-8 weeks. If you finance it, you must make minimum monthly payments and the bank will hold the title until your final payment is received. If you are financing, you will 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.
Financing your vehicle is often the best option. Most banks require a down payment which can sometimes be offset by the equity in your trade-in. The amount of the down payment is usually based on the lender’s requirements and your credit score. The value of your trade-in is determined by current market value and vehicle condition.
It is difficult to determine what the value of your vehicle will be in the future. Your vehicle will be worth whatever you can sell it for, and that often depends on how well you maintain it. Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility!
End of Payments
Once you’ve made all of your payments and fulfilled your obligations to the lender, the 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.
Who Owns It
Leasing is a great option for people who want a lower monthly payment or who think their vehicle needs might change within 2-4 years. While leasing, you are paying for the use of the vehicle and the leasing institution maintains ownership. At the end of your lease, you have the option of purchasing your car or turning it in at the dealership.
Leases often do not require any type of down payment and monthly payments are usually less than if you were financing. What is usually required? 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 make a down payment or trade in your old vehicle. If you exceed the mileage agreed upon in your contract, there are usually additional fees.
Financial institutions will set a "residual value" based on their own research. The residual value is based on what the estimated resale value of your vehicle will be after the agreed upon number of years and miles. This is also the amount for which you can buy your car at lease end, plus required taxes and fees.
End of Payments
Most people return the vehicle at the end of the lease term. Some choose to purchase it during their lease or at lease 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 Cars to Lease
The best cars to lease are those with the best residual 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. We are happy to help.