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TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Auto Loans Versus Auto Leases

Auto industry statistics indicate that 80 percent of auto buyers either pay cash for their purchase, or finance it with a loan issued either through the dealer or a private financial institution. However, there is a small percentage of people who do not prefer to buy a vehicle, but rather prefer the option of leasing.

If you are in the market for a new automobile, you may be wondering whether owning or leasing is the best option for you. The choice depends on a number of factors.

Some of the reasons why people prefer buying over leasing include:

  • Leasing hidden costs. First and foremost, leases eventually must be returned, and lessees can find themselves paying out of the nose for hidden costs they weren’t expecting. One such cost is mileage. Most leases come with a pre-determined mileage limit. Lessees who exceed the mileage limit for the term of their lease will end up reimbursing the auto dealer the current mileage rate per mile for every mile beyond the lease’s limit. Most three-year leases provide a 36,000 mile limit. For the average driver, 12,000 miles per year may not be enough, particularly if you travel for your job.
  • Maintenance. Another benefit to buying versus leasing is that even while leasing, you are responsible for the maintenance of the vehicle. While most leases come with warranties that will cover the cost of most major repairs, those leases do not extend to routine car care such as replacement tires/tire rotations, oil changes or other fluid replacement. Essentially, the lessee will be paying to maintain a car that he will be returning for someone else to enjoy later.

Some of the reasons why people prefer leases over ownership include:

  • Lower monthly payments. Because the vehicle is technically being “borrowed” for an agreed-upon period of time, rather than being purchased outright, monthly payments tend to be lower on leases. The payments also are lower because the lessee is only paying for the depreciation of the vehicle’s worth, rather than the value of the entire vehicle. However, at the end of the lease term, the lessee doesn’t own anything.
  • Driving the latest model. Some people always want to be seen in the latest model car. They’re willing to put up with a constant monthly lease payment so that they can trade their car in every 2 or 3 years for a newer version. While people who choose to own a car look forward to not having a car payment, these individuals are comfortable with budgeting for lease payments forever.

No matter which option you choose, make sure you fully understand the benefits and drawbacks to each of them before signing on the dotted line.

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Published:  Wed, 18 Oct 2017 06:47:00 GMT



How to finance a car at 0% interest

Paying no interest on a new car loan may sound almost impossible. But it is possible for people with very strong credit. And it's something you should definitely consider, because over the life of the loan it can save you hundreds of dollars. Rates as ...

Published:  Tue, 17 Oct 2017 13:39:00 GMT



Bharat Fin to Give Bike Loans

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Published:  Wed, 18 Oct 2017 00:48:00 GMT



Car Loan Boom Led by Lloyds Stokes Loss Fears as Sales Dip

Riding in style becoming popular thanks to easy car loans As U.K. car sales drop for the first time in six years, Britain's banks could be forgiven for getting nervous about their 24 billion pounds ($32 billion) of exposure to motor loans. The Bank of ...

Published:  Tue, 10 Oct 2017 21:00:00 GMT



Edmunds: What to know about donating your car to charity

It's easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles, and it will tow your heap away. But if you want to maximize your tax benefits, it's more complicated. Here's a walk through some ...

Published:  Wed, 18 Oct 2017 04:38:00 GMT



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You may have faced such a situation in life when you've fallen short of cash during the middle of the month. What step did you take during this moment If you own a car and a title ownership of the car, you can get a loan, mostly in the form of quick ...

Published:  Thu, 12 Oct 2017 07:44:00 GMT



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