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Off Lease Auto does not offer leasing of
its used car inventory, but
we wanted to provide some helpful information
if you are considering leasing instead of
buying a vehicle.
Q1: Should
I lease?
Q2: Do
I own my car when I lease?
Q3: Any
benefits to buying?
Q4: Which
is best for me?
Q1: Should
I lease?
A: Leasing is a good move if you're someone
who wants the very latest model, puts fewer
than 12,000 to 15,000 miles a year on your
car and maintains it religiously. With those
caveats in place, leasing generally offers
lower monthly payments or allows a buyer
to get a more expensive car for the same
monthly payment they would make in a conventional
financing deal.
Q2: Do
I own my car when I lease?
A: You never own the car -- it's the property
of the leasing company -- and at the end
of the lease you have to give it back and
walk away with nothing, buy it outright
for the residual value set in the contract,
or trade it in for a new car and a new lease.
Q3: Any
benefits to buying?
A: Buying comes with some obvious pluses.
If you drive the vehicle right and take
care of it and it can be worth a nice amount
when you finish paying for it. After about
three years it could probably be worth more
than you owe in case you want to get rid
of it.
Q4: Which
is best for me?
A: To decide which option is best for you,
before you begin shopping for a specific
vehicle, honestly answer these questions:
Do you drive more than 12,000 to 15,000
miles a year?
Remember, be honest. If you drive more than
that, leasing isn't for you because you'll
end up paying hundreds, if not thousands,
of dollars, in extra mileage fees.
Do you mind always having a car payment?
If not, leasing may be right for you. It
will allow you to get a new car every three
years without making a substantial down
payment.
Do you take good care of your vehicles?
And generally avoid parking lot dings and
fender-benders? If you don't, then buy,
don't lease, because lease contracts require
you return the vehicle in good shape, fully
maintained.
Do you foresee ever modifying your vehicle?
Then buy, don't lease, because under a lease,
you don't own the vehicle. Any changes you
make could affect its value and the leasing
company will want compensation.
Do you anticipate any lifestyle changes?
If you foresee marriage or a new baby, for
example, during the term of the lease, then
buy instead. If you lease that two-seat
sports car and two years from now, need
a minivan, you'll pay through the nose to
get out of the lease. You may owe more than
the sports car is worth two years into a
conventional loan, but you'll likely pay
less making a vehicle switch than you would
under a lease termination.
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