Advantages of Leasing Versus Buying
Today’s stretched household budgets make having a low monthly vehicle payment increasingly necessary. This has made the lower payment of a lease vs. a long term loan become more popular with today’s car-buying public.
Why Buy Used When You Can Lease New?
The lower monthly payment of a lease means:
- You won’t ever be “upside down” on a lease, as opposed to a loan. Those who buy new with a long-term loan tend to owe more than the car is worth (or resale value) for the first few years of the loan term. Also, you won’t be susceptible to taking the “depreciation hit” that buyers are.
- You will save on purchase taxes. On a lease, you’re only taxed on the total amount of the lease rather than the full price of the vehicle when you buy.
- Lower monthly payment. This is the most obvious advantage and it is considerable. For many buyers it can mean the difference between driving a new vs. used vehicle, and even being approved or not.
- You don’t have to worry about trade-in value. Most buyers either have to hassle with selling their vehicle privately or taking a value hit when they trade it in. You will know what your vehicle will be worth at the end of your lease term before you even sign. Wouldn’t that be nice to know when BUYING? Unfortunately, there are no guarantees on that. With leasing, there is!
- Most leases offer the option to finance buy your vehicle at the end of the lease term. Because the lease usually requires that you take care and maintain the vehicle to a certain standard, you will KNOW the condition of the “used” vehicle you are buying, right? If you are buying your own used car, what better peace-of-mind can you have than that when buying used?
- Keep in mind the overall cost of buying vs leasing over the term of the loan. Be sure you are comparing apples to apples (i.e. buying a new vehicle vs leasing the same new vehicle–rather than new vs. used).
- Lease from a dealership you trust, who will answer all of your leasing questions upfront. McCloskey’s sales consultants will do just that. If you have any questions at all, they will answer them before you sign. McCloskey’s goal is not only to earn your business today, but also when your lease term is up. They know if they get into the right vehicle for a payment you can afford, not only will you come back, you’ll recommend them to family and friends! It is McCloskey’s proven win-win-win philosophy that has allowed them to grow with the Colorado Springs Community since 1989.
Don’t deal with anyone who does not have these goals (your REPEATED business and the recommendation to your family and friends) as their main motivation for dealing with you.