When it comes to buying or leasing a vehicle the options can be confusing. To help you make an informed decision we have provided some information below to help in the decision process.
When you buy the new or used car you pay for the entire cost of the vehicle.
When you lease the new or used car, you pay for only a portion of the vehicle’s cost, which is the part you use during the time you are driving.
Who Owns it?
Whether you pay for the car with cash or finance it and make monthly payments, either way it’s yours. Of course, if you’re financing it, you’ll have to meet your agreed obligations that the lender requires until all payments are made or it is paid in full.
What are up-front costs?
If you’re financing it, the bank will probably request 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 score.
What will the future value of my vehicle be?
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!
If I purchase a vehicle and pay off early are there any additional fees?
On any conventional purchase with Bob Moore, all retail purchases are simple-interest contracts that do not have any pre-payment penalties.
What happens when I pay off my vehicle?
Once you’ve paid off what you owe on your contract, that’s it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is paid IN FULL.
Who owns my vehicle?
You do not own the car when you lease. You’re paying for the use of the vehicle, the finance institution that you leased it through owns the vehicle. This is one of the reasons why you pay less per month, than if you were to purchase the vehicle.
What are my up-front costs on a lease?
Typically on a lease they do not require any cash down payment. Due at signing is the first month’s payment, a security deposit or acquisition fee and your tag title and licensing. These items may also be rolled into the initial amount financed. As with a purchase, if you want to lower your monthly payment you can add a down payment to the purchase.
What is the future value of my vehicle when I lease?
When you lease, since you don’t own the vehicle, the bank determines the future value of the vehicle. When you agree to the terms of the lease contract the future value of the vehicle is called the residual. At the end of the term of the contract you have the option to purchase the vehicle for that amount, turn the vehicle in (as long as you meet all the requirements of the lease contract) or trade the vehicle in, in some instances this may be beneficial to you if the residual is less than the actual value of the vehicle.
What happens at the end of my lease?
Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Ask your sales consultant for these different options before turning your vehicle in and we will make sure we select the best option to meet your needs.
What are the best cars to lease?
The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value