TopConsumerReviews.com
      April 27, 2018

Home  >  Auto Loans  >  Articles

Your Information Is Secure
Worry Free Car Care Manual Newsletter

Latest Reviews

Air Purifiers

Business Cards

Dancewear

DIY Home Security

Dog Beds

Fitness Clothing

Golf Clubs

Graduation Invitations

Makeup

Refrigerators

 

Related Articles

Are Auto Loans Through A Car Dealer A Good Idea?

Auto Loans Versus Auto Leases

How Much Car Can You Afford?

How Your Auto Loan Can Be Affected By Your Credit Rating

What To Look For When Shopping For An Auto Loan

 

Top Consumer Reviews Articles

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.

Wells Fargo Fined $1 Billion for Car Loan and Mortgage Malfeasance

In this segment of the Motley Fool Money podcast, host Chris Hill is joined by Million Dollar Portfolio's Jason Moser, Hidden Gems Canada's David Kretzmann, and Total Income's Ron Gross to reflect on last week's business and economic news, and one of the ...

Published:  Thu, 26 Apr 2018 15:57:00 GMT



Talking Cars: Car Loan Advice, Rising Fuel Prices, and the Genesis G70

Main theme: Our panelists discuss summer gas prices: why they rise and what consumers can do to save money at the pump. They also offer advice about how to avoid getting sucked into a long-term auto loan, and why it's a good idea to shop around for your ...

Published:  Thu, 26 Apr 2018 14:57:00 GMT



Should you fix up or break up with your car

head of direct lending for Chase Auto Finance. At the very least, for a reliable used car, expect to spend a minimum of $2,000, plus tax and registration fees, says Mark Holthoff, editor at Klipnik.com, a community website for used car enthusiasts.

Published:  Thu, 26 Apr 2018 08:06:00 GMT



Colleges are using consultants to manipulate student loan default rates, GAO says

Defaulting on a student loan can severely damage a person's credit rating, making it much harder to buy a house or car. It could also result in the loss of tax refunds or in wage garnishment, because the government has extensive power to collect on ...

Published:  Thu, 26 Apr 2018 09:47:00 GMT



ATO hits ExxonMobil with tax claim over loans

ExxonMobil, which supplies oil to Daniel Ricciardo's Red Bull Formula One car, has been audited by the Australian Tax Office over intra-company loans. EPA "Following a review of financing structures and related party loan pricing, on April 3, 2018 ...

Published:  Thu, 26 Apr 2018 02:11:00 GMT



Honda Everus concept is a tiny electric vehicle designed for car sharing in China

At the 2018 Beijing Auto Show, Japanese automaker Honda unveiled a concept car that previews an entire new China-specific brand called Everus that will be dedicated to electric cars and car sharing. The Honda Everus EV concept looks like an electric ...

Published:  Thu, 26 Apr 2018 16:10:00 GMT



Consumer Confidential: Trump and GOP lawmakers are making it easier for auto dealers to racially discriminate

What it's intended to address is the amount dealers can boost interest rates for auto loans. Most lenders allow dealers to wet their beaks in this way, permitting them to pocket some or all of the difference the higher rates produce. Studies have found ...

Published:  Thu, 26 Apr 2018 06:26:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure