Leasing ensures that you'll always drive a late-model vehicle, won't have to pay for warranty-covered repairs
and won't have to bother with re-selling at the end.
Loans are also sensible for those who want to customize their vehicles, plan on keeping their cars for long
periods of time and plan to re-sell their vehicles to help recoup the costs of ownership or expenses of additional
cars. For those who quickly wear vehicles out, loans may be safer bets as lessors often add "excessive wear"
charges if the car is returned with wear over the limits established by the contract.
Annual mileage restrictions are a major limitation for customers who choose to lease. Lessors want their
figure is between 12,000 and 15,000 miles. Beyond the established limit, fees accrue on a per-mileage
basis, usually in the range of $0.10 to $0.25 per mile. So if most of your driving is local, leasing makes sense.
However, if you consistently tack on 500 or more miles a week, definitely look into a loan.
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The answer to this question depends on how you plan to use the vehicle. If you like the idea of driving
a more expensive vehicle for a smaller monthly payment, leasing is a great option. However, if eventually
owning the car is important, financing with a loan is the way to go.
Yes, registration, taxes, extended service plans and other supplemental charges may be included in the financing plan.
Yes, although they function somewhat differently from new car loans. A down payment of 20 percent or more is often
required and the interest rate can be a point or two higher. Understandably, banks are more hesitant to loan money
for used car purchases, as they would rather own a newer car if the borrower defaults. However, the market is full of
good used vehicles, many of which are created by short term leasing.
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