Lease vs. Buy
If you have a good idea of the vehicle that you want to drive, the next step is to decide which type of financing is right for you. Lease or buy? Admittedly, automobile leasing isn’t right for everyone. But, everyone should explore leasing and decide if it’s right for them before they make a decision to opt for traditional financing. Here’s why!
Why Auto Lease?
No cash down required at signing
And if you are looking for the best car lease, FairLease requires ZERO down payment and ZERO security deposit (*with approved credit). No cash required at signing means more money in your pocket for other things. Simply make your first payment at lease signing, but you can even delay that first payment up to 60 days!
Lower monthly payment
Lease payments are typically 30 to 40% less on a lease than a loan. FairLease has great lease deals in Dallas and the entire DFW Metroplex. The average lease payment could be $150 less than a loan payment. With $150 extra dollars a month, you have the freedom to choose how to use that extra money. You won’t have it tied up in a depreciating asset.
Consider the chart below. Comparing a leased car deal versus buying a car with the exact same price, the lease is 50% less than buying the car over a 36 month lease.
Mileage for Leasing vs. Buying
Most leases you hear advertised allow 12,000 miles per year or less. FairLease typically starts at 15,000 miles per year, and can customize your lease to fit up to 30,000 miles per year.
Most customers are able to have a higher mileage limit on their lease in exchange for a higher monthly payment and still save money over buying.
Depreciation Risk Factors Leasing vs. Buying
With auto leasing there is no depreciation risk. At the end of your lease, you turn in the car and get something new. You don’t have to worry about being “upside down.” The lender has taken all that risk out of the equation. And at FairLease, if you have built up ANY equity in the leased vehicle, we will cut you a check! On the other hand, if you “own” your car, at the end of the loan term, you have to try to trade it in or sell it to someone else. You can always keep it but you run the risk of additional service issues and the warranty expiring. In the end, auto leasing provides peace of mind on the future value of your vehicle!
More car for the money
Because lease payments are lower than loan payments, you can afford to get more car for the money. This allows you to have a new car more often, to upgrade when your needs change, and to take advantage of the newest safety and convenience features.
And don’t just take our word for it. Jessica Anderson from Kiplinger.com writes,
“About 20% of new-car transactions are leases, but I'm convinced that more people should be leasing. As manufacturers figured out that the cash rebates they offered were hurting resale values, and as the credit spigot began to flow freely again, carmakers shifted incentives from rebates to low-interest financing and leases. If you know what you're looking for and negotiate smartly, you can save money.”
Expense or Investment
A car purchase is an expense. Consider this: would you buy a house that’s worth $300,000 today and is guaranteed to be worth $120,000 in five years? No! Then why buy a car today for $30,000 that will only be worth $12,000 in five years?
A vehicle is one of the most rapidly depreciating assets in the market today. Consider leasing it instead and let someone else deal with the depreciation. Conventional wisdom is correct; buy assets that appreciate in value, but lease your vehicle because it depreciates in value.