Buying vs. Leasing
Should I lease or buy my next vehicle in Southern Colorado?
Is a lease or a purchase the best option when deciding to acquire a new vehicle? For some people, owning the vehicle is the primary goal, while others prefer to have a new vehicle every few years so leasing is their best option. Having each option explained can be beneficial to choosing the right option for you. Explore this guide to owning vs. leasing. You will not be disappointed when you buy or lease a new INFINITI car, crossover, or SUV at Red Noland INFINITI!
Purchasing a car, truck, van, or SUV is, by far, the most common way to get a new vehicle. Most of the population finances their new or used vehicle purchase, while some decide to pay in cash. Purchasing requires making monthly payments, including interest, for a term as short as a few months or up to 5, 6, 7, or more years. The interest rate the bank charges for the loan depends on several factors, including the market, type of car, age of car, credit history, credit score, down payment, and more. Your payments will include both principal and interest until the car is paid-off.
Leasing a car is almost like renting a car. During the lease, you pay a portion of the value of the car. The amount of the car you are paying for is generally the amount the car will depreciate in value over the course of the lease. You are only paying for the time you have the vehicle. You will not own the vehicle when the lease is finished, but you may be offered the opportunity to purchase the vehicle for the value of the vehicle after the lease.
When you buy a car, you are investing in your future. Once you have completed payments on a vehicle, you own it. You are able to drive the car as much or as little as you wish. Taking care of the vehicle can allow you to hold off buying a car for several years. You can use that time to save money or invest in other more pressing issues. You also have the ability to sell the vehicle and get a nice portion of the value back in your pocket or use that vehicle to trade in on another new vehicle. Trading in a vehicle not only reduces the amount owed, but also reduces the amount that will be taxed by the government. Finally, you can upgrade, modify, or customize your vehicle as you see fit. You are in charge of everything related to that car.
If you are looking to save money, payments are lower on a leased vehicle. On a lease, you are only paying a portion of the price of the vehicle. In a similar way to renting a car, once you have finished with your lease term, you simply turn the vehicle back in and move on to the next one. Leasing may also allow you to get a nicer car than you could afford to purchase since the payments are lower. Lease payments are a percentage of what monthly loan payments on a purchased car would be. Although lease terms can very, you will be able to get into a brand new vehicle every few years. Imagine having the newest available automotive technology every two or three years.
WHO OWNS IT
When you buy a car, the car is yours as long as it is paid for. Regardless if you pay in cash or finance the vehicle, you are the owner. If you finance the vehicle, payments need to be made before you get the title to the vehicle. The bank or credit union has a lien on the vehicle until it is paid for in full.
WHO OWNS IT
The leasing company owns the vehicle you are leasing. As mentioned earlier, you are basically renting the vehicle through them. You are making payments to that company for a set amount of time and turn the vehicle back in to them when the term is done. You are resposible for any damages to the vehicle as well. At the end of the lease, you will generally have the option to buy the vehicle from the leasing company for an agreed-upon price.
You may or may not need an initial down payment when you purchase a vehicle. Needing a down payment is generally calculated according to your credit score and credit history. If you trade in your old vehicle, the value can be used as a down payment. The bonus with using a trade-in is the taxable amount is reduced by the value of the trade-in and you will pay less in tax.
Leases do not usually require a down payment, but you will have to provide the first month’s payment, possibly a security deposit, acquisition fee, and any other applicable costs. However, some more expensive vehicles do require a down payment of some type to initiate the lease. You can lower the amount of your monthly payment by increasing the amount you put down.
New cars will depreciate as soon as you drive them home. Do not let this scare you! Regardless of any depreciation, your car will have value after it is paid-off. If you properly maintain your vehicle, you will be able to sell it in the future. It’s important to visit a factory-authorized service facility at regular maintenance intervals for this reason. After many years of use, even vehicles in poor shape could be sold for parts or scrap.
Since the company that provides the lease owns the car, you do not get any benefit of the vehicle’s value. However, if you decide to purchase the vehicle at the end of the lease, you should get a great deal on a car you already know. You are most-likey going to move on to enjoy your next new vehicle. Be aware of any possible mileage overages or wear and tear penalties that may happen if you drive the vehicle more miles than you contracted for.
END OF PAYMENTS
Once you have made all the payments in your purchase contract you are done. Your bank or credit union will release the lien on the vehicle and you will be able to obtain a clear title. All you will need to do is go to the State Motor Vehicle Department and show them the release and they will issue a title in your name. The car, truck, SUV, or van is now yours.
END OF PAYMENTS
Most of the time, you simply return the vehicle to a dealership when your lease ends. However, you may be able to purchace the vehicle after the term of your lease is over. When signing the paperwork for the lease, the finance manager will ask what your intention is for the vehicle at the end of the lease (you may not know then). You may want to purchase the vehicle or trade it in early if possible. If you have any questions about the lease, ask the finance manager at the dealership.
BEST CARS TO LEASE
This is a question that gets asked often. The best vehicles to lease are generally the vehicles that retain the most value at the end of the lease term. Since you are only paying for that amount of depreciation, the better the value, the lower the payments will be. You can ask your finance manager at Red Noland INFINITI which INFINITI models are the best options to lease. You can have him or her run the numbers on any vehicles you are interested in…
Regardless if you buy or lease a new car or SUV from Red Noland INFINITI in Colorado Springs, INFINITI gives you outstanding value at an amazing price. Stop by today to check you purchasing vs. leasing options with our huge selection of new INFINITI vehicles: Q50, Q60, QX30, QX50, QX60, and QX80.