I finance my cars so I can eventually pay them off.Only 19% of people who obtain 60-month financing keep their vehicle long enough to make the 60th payment. If you trade before you pay off the loan, you have actually leased the vehicle without enjoying any of the benefits of leasing or of actually owning your vehicle. You stop realizing the benefits of ownership, including not worrying about your mileage and wear-and-tear charges, when you trade the vehicle in.
If you're financing your car, the lender actually owns it until you make the final payment. You're likely to trade it in before you own it.
I like to own my cars.
There are no disposition fees, early termination fees, turn-in fees, or purchase option fees with most leasing companies.
There are penalties at the end of the lease.
Simply turn it in to your insurance company as a claim just as you would if you had financed the vehicle or owned it free and clear.
What if I damage the vehicle?
Absolutely not! When you rent something, you do not pay down the principal. When you lease, you are actually paying down the principal and have several options at the maturity date.
Isn't leasing like renting?
Many people who lease believe that instead of having nothing to show at lease end, they've gotten the best years from a quickly depreciating asset
Yes. However, a lease usually ends about the same time as the warranty, so it's unlikely you'll pay for any repairs.
Am I responsible for repairs needed while I lease this vehicle?
Actually, more and more people are leasing as it provides a less expensive alternative to driving a nicer, newer vehicle. It's the most affordable and most intelligent way to drive a new car.
It sounds too good to be true. Why don't more people lease?
Many of our own employees lease vehicles, including Tim Glockner!