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Lease or Purchase?
The Smart Consumer's Guide To Financing A Car.
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With so many different types of financing options
available to consumers today, it's easy to understand why I'll draw as big a crowd of
consumers at parties (a position historically held by doctors or dentists) asking me what
they should do about their next automobile acquisition. Everyone's personal financial
situation is different; everyone's usage pattern, tastes for trading in-and-out of cars
and of course, their price point is always unique. Here's a sample of why it's both
exciting and confusing for today's car shopper:
New or Used?
Lease or Purchase?
Rebate or Lower Interest Rate?
Conventional Loan or Balloon Note?
Something consumers need to remember is that automobile
dealers shifted their profit center from the sales office up front to the finance office
in the back years ago. In other words, making the wrong choice here may negate all the
good you did in negotiating the price of the vehicle. That's why I've created some
guidelines for you to follow which should help you make the best decision.
- Lease or Purchase? If you fall into the 80th
percentile of today's car buyers, and trade your vehicle every three to five years, then
you need to investigate both options (lease or purchase). If you know that you'll keep
your vehicle six years or more, then the purchase option is usually the best for you.
- How much are you paying for the vehicle? Make sure the purchase
price appears on the contract that you sign. By the way, the interest rate may or may not
appear; it's not required by law on every contract in every state.
- Look closely! On lease contracts, look for the line "Total
Adjusted Cap Cost." This number is the amount you agree to pay for the purchase of
the vehicle, taxes and fees. If someone attempts to add any undisclosed profits or cost,
they should appear here.
- Many manufacturers are promoting Balloon Notes or Smart Loans.
There are not much more than leases disguised for the customer that is uncomfortable with
the word "lease." The problem in most cases is that they do not offer the
protection or benefits of a lease, just the payment plan. Really investigate these plans
thoroughly and remember—the Finance Manager at the dealership almost always is paid a
commission based on the programs he/she sells. If they're pushing one plan over another,
there could be a personal financial motivation to do so.
- How many miles do you drive? Annual mileage and the planned us of
the vehicle (personal vs. business) coupled with trading habits are important points to
evaluate when making the Lease or Purchase decision.
Once you've examined all of the figures and options, you'll be
much better equipped to make a more informed acquisition decision, and (what a concept)
one that best fits your personal situation.
Great news for
Texans! Ben's pleased to share with you
his hand-picked choice for all of your auto buying or leasing needs:
Manufacturers Auto
Leasing.
Manufacturers Auto
Leasing has been in business for over a decade, leasing thousands of
vehicles across Texas and around the nation.
They have all regional and national lending institutions
on-board and available to insure their clients receive the very best
lease program for the vehicle of your choice.
The biggest
advantage for you to deal with Manufacturers Auto Leasing?
They have the Dover Guarantee...which means
you've got an added level of confidence knowing that you're dealing
with the best of the best. You'll always be treated right
because that's just the way Manufacturers Auto Leasing does
business. E-mail
Ben and he'll personally put you into the hands of your
new, personal (trustyworthy!) sales/leasing consultant.
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