An expert opinion by Barry at Barry’s Auto Body of Staten Island NY 10312 on whether lease or financing is right for you.
Car lease advantages
- The monthly payment will be less.
- You are able to lease a car or truck with absolutely no money down. (recommended)
- Trade the automobile in every two or three years for a new one.
- NEVER WORRY ABOUT CAR FAX. ACCIDENTS ARE NOT YOUR PROBLEM.
- Usually more monthly specials on leases.
- You will not have to worry about trading the vehicle in or selling it when its time to get rid of it.
- Leases almost always come with full bumper to bumper warranty coverage for the entire duration of the lease.
- Rock a more expensive car without paying for it.
- New I-phone or Android ? No problem. You will always have the newest technology available in you auto.
- Usually the yearly maintenance including oil changes are including in the lease price.
- Only pay the sales tax for the 2 or 3 years you are leasing car instead of the entire amount.
- Business car? Your accountant may be able to write off the entire lease payment.
Car finance advantages
- Its your car. You own it.
- If you have a car accident you do not have to repair it if you do not want to.
- Want to keep the automobile for over 5 years. Then this option makes sense financially. Otherwise lease is better.
- Take your car to Mexico or Canada no problem. Leases may have restriction from taking car out of the United States.
- Customize the car or truck as much as you feel like.
- Put as much mileage as you want to on it.
- Once the loan is paid off you have no more payments.
- You don’t need as good of a credit score.
Car lease dis advantages
- Car companies may give an allowance for small damage but any big damage will have to be repaired.
- You must not put more mileage than the 10 or 12,000 miles you lease contract allows. Or you will have to pay a few.
- It is not your car. You don’t own it.
- You always have to pay a car payment.
- You will have to keep automobile customization to a minimum.
- Check with dealer if there are any restrictions on how you can use it.
- Harder to lease with bad credit.
- The lease terms may be more complicated than buying it out right.
- You can not turn it in early to avoid payments. Unless dealer allows that.
Car finance dis advantages
- First two years are always the worst in automobile depreciation so you will have to keep the car for at least 5 years for this option to be cheaper.
- You must pay the entire sales tax of the vehicle.
- If this is a business vehicle your accountant may not be able to write off the entire amount like a lease.
- CAR FAX IS YOUR ENEMY HERE. ONE ACCIDENT AND YOU LOSE A TON. LEASE YOU DO NOT HAVE TO WORRY.
- Do not put any money down on the vehicle. If you have a car accident and the car is a total loss. You will lose anything you put down. Gap insurance won’t cover money you put down.
- Honda/Acura and Toyota/Lexus are normally the best when its time to return your car. They don’t both you as much for damage you put on car.
- Nissan has always been one of the picky when its times to return your car and sometimes charges a lot for damage you put on car.
- Check the residual values before you start shopping for a lease. Cars that retain their value the best will usually have the cheapest lease terms.
- Do not let dealer pressure you into making a decision that day. Always wait 24 hours so you know you are not making an emotional decision.
- Always take gap insurance for the entire duration of lease or finance. If you don’t you may be sorry.
- If car dealer has a tire and rim package. Take it as long as its not ridiculously priced.
- Want tips on how to clean your automobile? Here are a few links. How to clean, polish and wax your car or How to clean the inside of your windshield. Check our our You Tube channel for more.
Thank you very much.