How Do I Know If I Should Buy Or Lease A Car
Keywords: car parts, auto parts, cars, trucks, SUV
There are many important differences to consider when you are deciding whether to get a loan to purchase a car or lease a car from a dealership. Some of the considerations are whether it is business or personal, how many miles you will drive and how long you intend to keep the vehicle.
With a conventional loan the car belongs to the bank that gave you the loan until you have paid off the loan. Then, the car becomes yours. If you are the type that keeps a car forever this is probably for you.
With a lease you are essentially renting the car from the dealership. The lease is like a rental agreement. You make monthly payments to the dealership. But the car does not belong to you. When the lease ends, you have to return the car to the dealership.
Now let’s look at some other considerations and comparisons between a lease and a regular loan.
Wear and tear:
No additional costs for wear and tear in your loan agreement.
Most leases charge you extra money for any damage they find at the end of the lease that goes beyond “normal wear and tear.”
Monthly payments:
Payments are higher with a loan; however, at the end of the loan, you own the car.
Payments are lower with a lease. This is because you are not purchasing the car; the dealership still owns it. Once your lease ends, you turn the car back in and the dealership can sell it or lease it to another customer. You may decide to purchase the car at the end of the lease; however, the total cost ends up being more than it would have been if you bought the car instead of leasing it.
Mileage:
No mileage restrictions with a loan.
Leases restrict the number of miles you can drive the car each year. If you exceed the mileage allowed, you have to pay the dealer for each mile over the limit, in accordance with your lease. For example, a dealer may charge you 15 cents for every mile that you drive over 24,000 miles in 2 years. If you drive the car an additional 3,000 miles, you would owe the dealer $450 for those miles.
Auto insurance rates:
May cost more during the loan than it will after the loan is paid, because the lender may require more coverage, but usually still less expensive than auto insurance for leased cars.
Usually costs more if you lease a car than it does if you buy. Most car leases require you to carry higher levels of coverage than purchase agreements do. Some insurance carriers may also calculate leasing to be higher risk than purchasing.
Gregg Hall is a consultant for online and offline businesses and lives in Navarre Florida. Get your car parts at www.autopartsplusmore.com
Previous Articles Highlighter:
What Is The Raise And The Lowball In The Car Business? (1)
This is the oldest trick in the book. They use odd numbered amounts of money to trick you into thinking the deal is so close they have to have that much to the penny to keep from losing money.
How To Buy A New Car Without Getting Ripped Off (2)
LIE! Like I said above, you owe them nothing. If you tell them you have a trade they will hold back profit on the new car or they will try to steal your trade in.
An Insider Look At Auto Dealerships (3)
With salespeople you are basically dealing with three different types. Some dealerships have the old guys that have been selling cars for 50 years when the price was whatever they wanted to sell the car for.
Can Chocolate Really Kill Your Dog (4)
Keywords: chocolate Most of us love chocolate and love the taste, so do our dogs but the problem is that the same chocolate we love to indulge in is not good for our best friend.
The Credit Rebuilding Car Sales Scam (5)
They advertise in the newspaper and on the radio that the credit doctor will help you fix your credit. You've heard the ads, "Good Credit, Bad Credit, No Credit, if you have a job and $99 down we can get you financed!" The industry has now evolved to the point where they actually have establishments that exist solely to cater to the bad credit customer.
Alternative Ways To Cut Fuel Usage (6)
Regular tune-ups also extend the engine life of a car as well as improve It is important to regularly maintain your vehicle. Regular maintenance can mean greater fuel economy and dollars saved.
Why To Wait A Year For A Hybrid Car (7)
One final reason to purchase a hybrid car is to end dependency on oil as a power source. Oil powers everything from our homes to our cars. As a result, the United States is one of the leading countries in the demand for oil.
Is Buying A Used Car A Smart Move Or A Dumb Mistake (8)
Wear old clothes that you don't mind getting greasy and dirty. If you are going to really check out a car you are going to have to crawl underneath it and you are sure to get dirty but it will be worth it to keep from buying something with problems that can cost you big down the road.
Preventive Maintenance For Your Bicycle (9)
Tighten the bolts that attach the pedal crank-arms to the front bearing. Pedals should be tight, with no binding. Check for looseness in front and headset bearings. Brakes Squeeze both brake levers and try to roll the bike to check if the brakes are operating properly.
Some Tips On Water Sport Safety (10)
Avoid painful sunburns and blisters by carrying a small bottle of waterproof sunblock, and protect eyes with sunglasses. Go with a buddy! Never surf, swim, dive, raft, fish, canoe, kayak, or Jet Ski alone.
Newer Articles Highlighter:
Buying A Car? Do These Things First (1)
9.Service contracts, credit insurance, extended warranties, and other options are not required and can be costly over the term of the loan. All of these things are almost pure profit to the dealer, don't buy them.
How To Avoid The High Pressure Tactics Of Car Salesmen (2)
Don't let them control you, you control them. Make them appraise you car before you do a buyers order. This will drive the salesman and the manager out of their minds!
How To Choose The Best Tire For Your Hybrid Car (3)
Most of them can still be used for up to 50 miles with no air pressure whatsoever. This is an amazing trait of these tires. With tires that can run without air pressure, you really have no need to carry around a jack or other tools for changing tires.
A Look At The Treadmill (4)
These machines allow you to burn more calories and fat while strengthening and shaping your muscles, and go above and beyond the performance of many others. If you're unfamiliar with these machines, ask a trainer to demonstrate for you at the gym.
How To Gear Up Your Kids For A Safe Motorcycle Ride (5)
Riding your motorcycle with your kids can be a very pleasurable experience, just be cognizant of the fact that with that experience comes some additional responsibilities that you have to take into consideration.
Is It Best To Exercise At Home Or At A Gym (6)
Memberships to a gym can often be quite expensive and may include other things that you don't need such as child care or swimming pools. You also won't need to be concerned about the latest trends of exercise gear as you most likely will be exercising by yourself at home.
Why Should You Wear A Helmet When You Ride Your Motorcycle (7)
Keywords: motorcycles, motorcycle gear As I am writing this article I am thinking of the recent accident involving the Pittsburg Steelers star quarterback, "Big Ben" Roethlisberger. If he had been wearing a helmet his injuries would not have been nearly as severe.
The Credit Check Scam In The Car Business (8)
You may think that you are giving then a check in agreement to buy at a certain figure but to them it is just another means of control. And the thing about it is they aren't shy about how much they ask for.
Don't Get Upside Down On Your Motorcycle Loan (9)
Keywords: motorcycles, motorcycle gear When I was in the automotive industry I saw the extension of car loans going into 54, then 60, then 72 months and with the extension of the loan installments came the inevitable negative equity.
Tips To Make Your Trade In More Valuable (10)
I ALWAYS looked for paint work and if I found it I assumed the car had been in an accident and deducted accordingly. Remember what I said earlier about a dirty car?