Auto Lease Pros & Cons
— Leasing —
Leasing an automobile is an affordable and often times logical alternative to purchasing a vehicle. Lease facilitations generally provide several attractive advantages over purchasing depending on the needs of the client, their driving lifestyle, trade cycle and of course credit situation. These comprise the pros and cons of leasing a car. The advantages of leasing include, but are not limited to:
- Less expensive monthly payments (see example Toyota lease).
- Little or no down payment required.
- Shorter finance terms.
- Protection from depreciation.
- Limited tax advantages.
By leasing, a customer only pays for the portion of the vehicle they use, rather than for the entire amount. Because you only pay for a portion, your payments are only a portion of what a buying might cost.
Additionally, leasing clients are afforded the benefits of driving newer vehicles over shorter periods of time helping them to avoid expensive maintenance and costly repairs. And since the future value of all LeasePro programs are guaranteed, leasing clients never have to worry about owing more on their vehicle at the end of the term than it is actually worth.
— Buying —
A common misconception is that buying a vehicle is “owning” a vehicle. Unless a client pays cash for a vehicle, the finance institution holds title to the automobile until the loan agreement is paid in full. In most instances, in order to make payments affordable, retail finance programs are extended over 5 or even 6 years of monthly payments.
Considering the vast majority of customers in today’s market replace their vehicle between 3-5 years, ownership is rarely enjoyed by the client with regards to buying.
Retail purchase programs can be advantageous. Some of the benefits include:
Unlimited mileage.
Unlimited freedom to modify the vehicle (add equipment).
Ownership at the end of the finance period.
It is important for a customer to consider all of the financing options available when exploring replacing or adding a vehicle to the family. LeasePro, a locally owned and operated auto facilitation and brokering office, helps customers understand these options, assists clients in making sound financial decisions and negotiates on behalf of customers in order to provide the greatest amount of value and savings associated in making this MAJOR FINANCIAL DECISION, regardless of whether you’re in the market to lease or purchase.