Need to Compare the Benefits of an Auto Purchase vs. a Lease with INFINITI?
When it comes to comparing purchasing and leasing a car, the options can be confusing. To assist you in making an informed decision, INFINITI OF DENVER have provided the information below. We hope you find it informative and useful in the decision-making 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 it.
AUTO PURCHASE BENEFITS
WHO OWNS THE VEHICLE IN AN AUTO PURCHASE?
Whether you pay for the car with cash or finance it and make monthly payments, either way, it is yours. Of course, if you are financing it, you will have to meet lender requirements, like a certain down payment amount and timely monthly payments. If you do not, they have the right to repossess it.
WHAT ARE THE UP-FRONT COSTS IN AN AUTO PURCHASE?
If you're financing a vehicle, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. Down payment is usually based on the leader's requirements and your credit score.
DOES AN AUTO PURCHASE IMPACT THE FUTURE VALUE OF YOUR VEHICLE?
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!
HOW DOES THE END OF PAYMENTS WORK IN AN AUTO PURCHASE?
Once you've paid off what you owe on your contract, that's it. Your vehicle is 100% yours, which is one of the greatest benefits when comparing an auto purchase to a lease. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.
AUTO LEASE BENEFITS
WHO OWNS THE VEHICLE IN AN AUTO LEASE?
You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.
WHAT ARE THE UP-FRONT COSTS IN AN AUTO LEASE?
Leases often do not require any type down payment or if so, it is minimal which is a major benefit when comparing leasing to purchasing a car. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee, and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more up-front.
DOES AN AUTO LEASE IMPACT THE FUTURE VALUE OF YOUR VEHICLE?
In most leases, you don't end up owning the vehicle so you don't end up selling it. That is the financial institution's job. However, 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.
HOW DOES THE END OF PAYMENTS WORK FOR AN AUTO LEASE?
Most people return the vehicle at the end of the lease term, but some like to purchase it at the end of their lease. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork, and we will make sure you have your lease set up the way you want.
WHAT ARE THE BEST CAR LEASES?
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.
If you are comparing the benefits of an auto purchase and an auto lease, the team at INFINITI OF DENVER has the experience and expertise to help you choose your best option.
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