Leasing A Car Versus Buying: The Truth Is Exposed
- August 15, 2019
- lease deal
- Posted by Dan Rose
- Comments Off on Leasing A Car Versus Buying: The Truth Is Exposed
In a fast-paced world, we rely on our vehicles to get us around. There are many options regarding purchasing a new car and today’s consumer is finance-savvy so it is worth taking your time to decide whether it is better to lease a car or buy it. Leasing contracts are negotiable and you can come to an arrangement that is advantageous to you. You must have a clear understanding of what you are paying for and how you are paying for it before you enter into any lease contract. Visit a car lease dealership with a good reputation.
What Are You Paying For?
Buying a car means you are paying for the whole car and most people take out a loan so there is interest too. When you lease a car you are paying for the reduction in the value of the car over the lease contract period. For example, if your car is valued at $30,000 dollars and it will be sold for $18,000 in three years then the depreciation value is $12,000. You are paying that, plus interest.
The advantage is that your monthly repayment is bound to be lower so you can drive a car with a higher spec. You can lease a model with better fuel consumption so you will save even more money. The positive side of leasing a car is you are able to negotiate the terms of all aspects.
What Taxes Are You Paying?
Typically you will only pay sales tax on your monthly lease payments. This is significantly less than paying sales tax on the whole car. With a lease, you will have to include the cost of gap insurance in the monthly repayments. This covers the cost should your car get stolen or totaled during the leasing period.
What Are The Terms of the Warranty?
Another advantage of leasing your car is that it will be covered by the warranty. That means you will not have to pay for repairs and maintenance as long as you remain within the terms of the warranty. These have to be performed at the time specified on your contract. Most companies hold you responsible for excessive wear and tear on the interior and exterior so you have to take care during the term of your lease.
Unless you clock up a huge mileage leasing is a great option for you. Staying within mileage limits is always part of a warranty deal. You can negotiate a higher mileage allowance so you will not be liable for any excess at the end of the lease.
What Happens At The End Of The Lease Term?
At the end of your contract, you just return the car to the lease dealer. You have the option of buying the car but if you don’t want to then the dealer will take the car back under the terms you signed on. You are now able to lease an upgraded model.
If you enjoy driving the latest model car then leasing is a great option for you. You may not have any equity as you have not bought the car but do not have to sell the car yourself or trade it in as part of a purchase deal.
To lease any make and model under the sun at the guaranteed best prices contact us today at: VIP Auto Group 276 Ridge Rd Lyndhurst, NJ 07071 (201) 354-5515