New cars are expensive and that translates to large monthly payments. No wonder that the lower payments you get when you lease a car has made leasing so popular. Rather than just looking at the monthly payment, though, the question really is: which financial approach best meets your needs? Let’s take a look at the leasing vs buying option closer:
Lower monthly payments and less money down can make leasing seem like a great deal. Frankly, the monthly payments often look unrealistically cheap. The truth, however, is that leasing offers a lot of convenience, but only if you are willing to put up with some limitations. Many leases, for example, include lower annual mileage limits – often only 12,000 miles per year and most leases require you to take diligent care of the vehicle (lots of trips to the dealer for checkups). Make sure the sum total of the restrictions required by the leasing company work for you.
In particular, be careful to investigate what happens when the lease term expires. When the lease is up, you will typically be offered a number that you can buy the vehicle for. Be sure to pay close attention to this “end-of-lease purchase price” and any additional fees that may occur. Some leasing companies do not state what the end-of-lease purchase price is and this is cause for concern. It may be higher than what you expect.
Leasing Conclusion: The sales team at fletcherchrysler.com suggest you are a good candidate for leasing if you prefer to have a new car every few years and put limited miles on your car every year. Leases are also great for those that can write off the use of a car for business use.
Before considering the purchase of a new car, calculate
what it is going to cost you every month. Start with the monthly loan payment and add on other monthly car expenses. When you have things totaled up, make sure that the total amount doesn’t put a strain on your other household expenses.
By the way, you should shop around; there are many places to get a car loan. You may choose to obtain a loan with a car dealership or go with the manufacturer's financing but there are many other options also.
You can obtain online financing. You may be able to arrange for pre-approval of a loan from your credit union. When you do some of these things, you may not have a specific vehicle in mind, just a general price range, and when you make the deal you write the dealership a check for the total amount. Some institutions will give you a lower interest rate if you have direct deposit and an electronic loan payment, so be sure to ask about it.
Remember to check for incentives
on your vehicle of choice. From zero percent financing to customer-cash rebates, manufacturers are constantly competing for your business by making their vehicles and financing more affordable.
Source: Fletcher Chrysler