New, Used, and Leased Automobiles: Robins Financial Credit Union
When you’re getting a car, how much you
pay and when you pay it can vary. A lot depends on whether you decide to buy a new car, buy a used car , or lease a car. Buying new involves a higher sticker price, but you get to be the first owner, and will typically get a comprehensive warranty. Buying used can mean a lower price, though you may need to do more work to ensure the car is in good shape. Another route people take to spend less money is leasing a vehicle. Leasing is similar to renting, but it’s over a longer term – typically two or three years. Some people like to lease because it allows them to drive a car that is more expensive than they’d be able to otherwise afford. Shoppers often still make down payments when they decide to lease a car, but their monthly payments are typically much lower than they’d be if they were financing to buy the car. Of course, the downside is that when the term of your lease ends, you won’t own the car The dealer who owns the lease will, however, typically give you the option to buy the car at the end of your lease. While a car loan has higher monthly payments, the car is yours when the term of your auto loan ends. So you can continue to drive it without monthly payments, sell it, or trade it back to the dealer as payment towards another car. So remember that leasing can be a tempting option – and it may be right for you – but be sure to check the math on the total
amount you will pay over time, so you can make an informed decision. If you have questions about leasing versus buying new or buying used, contact one of our auto loan experts at Robins Financial Credit Union, who will be happy to assist you! For more information, call, click, or visit any of our branch locations.