Auto Loan - Bad Credit Auto Loan, Auto Lease, at The Auto Finder.

LEASE vs. PURCHASE

An auto lease is nothing more than a legal extended rental agreement. The dealer sells the vehicle to the leasing company and the leasing company rents the vehicle to you. The amount of the lease is determined at the time of inception. The amount of money you are charged for the lease is the difference you pay for the vehicle and the vehicle's residual value plus any taxes and other charges. You could save money by leasing over the cost of an auto loan. View the following information to help you with your leasing needs. For an auto loan, CLICK HERE.

TWO TYPES OF LEASES

CLOSED-END: At the end of this type of lease you have the option to purchase the vehicle for the pre-determined value (residual value) or turn the vehicle in and walk away. This is the most common type of lease used today. Make sure you have a closed end lease should you lease a vehicle.

OPENED-END: At the end of this type of lease the pre-determined value is estimated. At the end of the lease term, you will have to pay the difference between the estimated pre-determined value and the actual fair market value.

	LEASE	PURCHASE
	OWNERSHIP: You do not own the vehicle. You use the vehicle until the end of the lease unless you choose to buy it.	OWENERSHIP: You own the vehicle and you get to keep it after the end of the loan. You may sell or trade the vehicle.
	PAYMENTS: The monthly payments on a lease are usually lower than purchase payments. You are only paying for the vehicle's depreciation during the lease plus rent charges.	PAYMENTS: The monthly payments are usually higher than lease payments. You are paying for the entire purchase price of the vehicle, plus interest and other finance charges.
	LEASING: If a closed-end lease, you return the vehicle at lease end, and walk away. There may be end of term lease cost.	PURCHASE: You will be responsible to sell or trade the vehicle when you want a different vehicle.
	INSURANCE: Insurance usually is higher for leased vehicles.	INSURANCE: Insurance usually is lower for purchased vehicles.
	MILEAGE: You are limited to the number of miles you can drive, 12,000 - 15,000 per year. Overage cost .10 - .20 per mile.	MILEAGE: Drive as many miles as you want. Remember, the higher the mileage, the lower the vehicle's value at trade-in time.
	END OF TERM: At end of lease, 1 - 4 years, you will have to purchase the leased vehicle or lease or purchase another vehicle.	END OF TERM: When you have finished paying the loan for purchase, 2-5 years, there are no further payments.

Shop For The Best Lease: Shop for a lease just as you would when shopping for a vehicle. Get all the information and compare.

Understand The Lease: Before you sign the lease, make sure you understand it. What happens if you drive over the allowed miles? What about excessive wear and tear? What happens if you terminate the lease early? Is it an open or closed-end lease? Remember that you will have to live with the lease for 12- 48 months, make sure it is what you want and need.

Questions? Please feel free to Contact Us us with any leasing questions you might have. We will answer your e-mail the same day we receive it.

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