What are the Options?
There are many options when it comes to financing a new or used vehicle and we understand it can sometimes seem overwhelming. To make it easier for you we have put together some basic details on the main options to choose between. We hope you find the information valuable and use it to make an educated decision on the best choice for you.
Before we get in to the details, let’s get the basics squared away. You have two main options for the vehicle of your choice; you can either buy the vehicle or lease it. If you buy the vehicle, you then have another two options of either paying the full price of the vehicle upfront or paying for the vehicle over a fixed period of time by financing the vehicle.
When you buy the vehicle, you pay the full cost of the vehicle (either upfront or over time) and then become the owner of that vehicle. When you lease the vehicle, you only pay for the portion of the vehicle during the time that you actually use it and don’t actually own the vehicle.
Who Owns It
Whether you pay for the vehicle with cash, or finance it and make monthly payments, either way you own it. Of course, if you’re financing it, you will have to meet the obligations the lender requires, like a certain down payment amount and keeping your monthly payments on time. If you don’t, the lender may look to take ownership of the vehicle to replace their investment.
If you are financing it, the lender will often 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.
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 our factory-authorized facility!
End of Payments
If you are financing, once you have paid off what you owe on your contract – that’s it! You retain 100% ownership of the vehicle and it’s yours to do with as you will. The lending institution will send you documentation as proof that the vehicle is completely paid off and all yours.
Who Owns It
You do not own the vehicle when you lease, the financial institution that you leased it through actually owns it. This is why you pay less per month in a lease than if you were to buy the vehicle. Instead, you are paying for the use of the vehicle during the time that you have it instead of the entire cost.
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 any other applicable taxes and fees. However, similar to financing, if you want to lower your monthly payments you can make a larger down payment initially.
In most leases you don’t end up owning the vehicle so you don’t have to worry about selling it at the end of your term, 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
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 and switch to a different leased vehicle. 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.
Best vehicles to Lease
The best vehicles to lease are those with the best value after the term of the lease, since they depreciate less you pay less. Review the lease ratings and speak to our helpful staff to see which vehicles retain their value and would be a good choice for you.