The Real Answer: Leasing is Almost Always Better (except for some vehicle models with extremely low resale value).
All The Definitive Reasons Why Leasing is Almost Always Better:
Get A Much Lower Monthly Payment and Lower Initial Cost!
Leasing most new vehicles will help you get a substantially Lower Monthly Payment. This is because you are only paying for a portion of the vehicle based on the amount of time you’re driving it. Why pay for the entire car when you’re never going to use it for its entire life?
You’ll also enjoy a Much Lower Initial Cost - as in, many thousands of dollars less up front - and you’ll still have a substantially Lower Monthly Payment.
Easily Save up to Thousands of Dollars on Sales Tax!
With Leasing, you’ll never have to pay the entire sales tax as you normally would, which is based on the actual selling price of the vehicle.
Instead, you’ll pay sales tax based only on the base amount of each Low Monthly Payment!
Why pay sales tax on an entire car when you’re never going to use it for its entire life?
Banks Lose Thousands of Dollars With Leasing – You Save!
Banks usually lose Many Thousands of dollars for every vehicle returned to them at the end of the lease term.
Banks lose a lot of money when you return the vehicle because they routinely over estimate the future resale value, known as the “Residual Value” on your Lease Agreement.
This becomes a significant savings for you, because within each monthly lease payment, a portion is paid toward the vehicle’s depreciation.
And when the lender over estimates the resale value (and they always do!), the depreciation portion of your payment is much lower than the amount needed to actually cover the vehicle’s true depreciation.
With leasing - you’re not paying nearly enough to cover the actual depreciation! And the Bank loses money upon your returning the vehicle to them at the end of the lease because the Bank ends up re-selling the vehicle for substantially less than their initially predicted future Residual Value!
Buying a Car Instead of Leasing Is Done At Your Own Risk…
If you initially Buy the new car instead of Leasing it - then You become liable for the vehicle’s actual depreciation, which is always a much lower resale value. The additional depreciation loss is your monetary loss whenever you sell or trade-in your vehicle!
The “General Rule of thumb”…
If a bank is willing to lose money, then you want to be the next contestant to stand in line and help them lose some more!
Said another way - Why take the risk of paying thousands of dollars for excess depreciation on a vehicle when there’s a Bank waiting to pay it for you?
The Technology In Cars is Rapidly Changing...
Constant engine improvements with fuel efficiency, hybrid and electric propulsion systems, crash test safety features including structural engineering improvements, autonomous features (self-driving and self-parking assists) can quickly make some cars obsolete and/or less popular - which will further reduce a vehicles' resale value.
In any such events, leasing will prevent you from being the one to lose even more money due to additional depreciation occurring - and the lower resale value lost, is the bank lenders problem, not yours.
Save Even More With Leasing…
If you’re still in love with your vehicle at the end of the lease term and would like to purchase the vehicle, you have the right to buy it and in most cases the Lender will allow you to negotiate and further reduce the remaining price paid to keep the vehicle!
Why would they negotiate with you? Because you’re likely going to end up offering to pay them more money than what they’ll otherwise receive at a wholesale car auction.
You become their “Bigger, Better Buyer” and if you do buy the car, you’ll receive what our Consumer Service calls “The Double Discount”!
Think of the Double Discount as an additional “Bonus Round” of negotiations because its now your second opportunity to get another big discount on the vehicle (in addition to the Big Discount our Consumer Service helped you originally receive!).
“I Don’t Want To Lease, I Want To Buy and Own My Car!”
Really? If you but that car, what you’ll own is the additional debt of the lower resale value the bank was willing to be liable for.
In addition, lets be realistic, when you finance a new car, do you own it? No, the bank owns the car until years later when it’s finally paid off in full. Only then do you actually receive the vehicle’s “Title Certificate”.
And most people never see the vehicle’s Title Certificate anyway, because they sell or trade-in the vehicle before the end of the loan.
What Happens if I Have A Collision With My Leased Vehicle?
Thank goodness you were smart to Lease it instead of Buying it! Why? The resale value of a vehicle with accident damage plummets dramatically lower, even if correctly repaired by a body shop. When a vehicle has been damaged from a collision, it permanently suffers “Diminished Value”.
Nobody wants to buy a used car that has previously been wrecked. An “All Original” vehicle is worth much more than one involved in a collision. For a previously damaged vehicle to be resold, it will have to sell for considerably less, in order to entice a buyer to purchase it.
When the Lease period is over, you can return the repaired vehicle to the Lender and all of the additional loss for Diminished Resale Value becomes the lenders additional loss - not Yours!
So, it’s pointless to buy a car and put thousands of dollars down and still take on much larger car payments than needed in an effort to try to “own” that car.
Either way, whether you Buy or Lease, you’re never likely going to “Own” that car anyway, because remember, the bank always owns the car until its paid in full.
Wealthy People Lease, Yet Could Easily Write A Check in Full
The most well to do people in America who could easily buy any new car in full simply by writing a single check, still Lease it instead! Why?
Because they’re smart! They know another “General Rule of Thumb” in life and this one says, “Buy the things that usually appreciate over time (like real estate, stocks etc.), and lease the items that depreciate”.
Smart people do not tie up large amounts of cash in depreciating assets (Cars). Instead - they free up their cash to make investments in things that will grow their money.
Save A Lot of Money When Leasing With Our Consumer Service…
Serving as a Your Professional Car Buyer, you will Always get the Absolute Lowest Interest Rate, based on your Credit Score; that lowest rate is Always at the Car Dealer's wholesale cost of funds, which is referred to as the "Buy Rate".
The Buy Rate is the actual rate given to the Car Dealer by the Lender, and when uniquely arranged by our Professional Car Buyers to be passed on to you - without any costly rate markups whatsoever by the Dealer, your Payments are much, much lower!