e- Best Auto Loans

Instead of getting a auto loan you may be considering leasing your next car or truck.
Each choice has its benefits. There are benefits to both ways of acquiring transportation
here are a few benefits and other things to know when comparing a lease versus a auto loan.

• Ownership: With a lease you do not own the car. Leases are basically long-term
rental agreements. You make monthly payments to the dealership. These agreements
might last 2-5 years. If you obtained a car purchase loan, you would own the car at
the end of the loan.
• Wear and Tear: Most leases charge for exceeding “normal” wear and tear. If you
buy, you would not have any additional costs for wear and tear in your purchase
agreement.
• Monthly Payments: You will have lower monthly payments if you lease a car rather
than finance a car. The reason monthly lease payments would be lower than monthly
loan payments is because you are not purchasing the car. The dealership owns the
car. Once the lease agreement is over, you usually turn in the car. Although you
have the option of purchasing the car at the end of the lease, the total cost would be
more than if you had initially bought the car. On the other hand, with a car loan, you
actually pay for the purchase of the vehicle. Once you finish making the payments,
you own the car.
• Mileage limitations: Leases usually restrict the number of miles you drive each year.
You must pay the dealer for each additional mile driven, as stated in your lease
contract. For example, a two-year lease might have a 24,000-mile restriction, and
cost you $0.15 for each mile driven over 24,000. This can add up if you drive a lot.
Driving 2,000 miles over the limit would cost you $300 (2000 x $0.15 = $300). If
you buy a car, there are no mileage restrictions.
• Auto insurance: Auto insurance usually costs more if you lease than if you purchase
a car. Most car leases require you to purchase higher levels of insurance coverage.
Make sure you find out what the requirements are and get an estimate from your
insurance company before you decide on leasing.

Tags:   auto-loans-versus-leasing · benefits-of-auto-loans-versus-leasingNo Comments