SHOULD YOU BUY OR LEASE?
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Hi! I’m Larry Dee, one of the Finance Managers here at Santa Margarita Ford. It doesn’t matter to us whether you buy or lease, we just want you to have the best financial options available. Here’s a little information that might help you decide if you want to buy or lease. And just like you’ve been reading on every page of our website, you’re always welcome to call us for more information! Here’s some information that can help you figure out which is best for you. |
| BUYING Who Owns It Whether you pay for all of it with cash, or finance it to make monthly payments, either way 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. |
LEASING Who Owns 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. Which is why you will usually pay less per month in a lease that what you would if you bought it. |
| Up-front Costs If you’re financing it, you’ll probably need to come up with 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. |
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 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!) |
Future Value 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 probably send you a “Green Slip” as proof that the vehicle is completely paid off and all yours. |
End of Payments Most people return the vehicle at the end of the lease period. 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. |
