Lease vs. Purchase

In the event of a total loss, the whole balance of the lease/residual is paid off, regardless of the actual market value of the vehicle, which is all that your casualty insurance will pay.

- If the guaranteed future value compared to the actual market value at the end of the lease favors you, you complete the purchase.

The only thing better than a tax deduction is never having to pay the tax in the first place.The tax advantage of leasing is that you only pay tax on the monthly payments. For example, you would pay 8-10% of 100% in a buy situation, or you can pay only the tax on 50% in a lease, based on the guaranteed future value.

That's good, not bad! You won't have any equity because you won't pay for any equity. That's why your payment is so low. In order to have equity in the vehicle, or own the vehicle, your payment would have been much higher. Instead of equity in the vehicle, you have cash. You can use this cash to buy the vehicle if you want, but you don't have to decide until the end of the lease. Some assets are good to own, like a house or stocks, because they have the possibility of appreciating.

It's true. Some people have gotten burned in leasing. It's because they were put into the wrong lease or it wasn't fully explained to them. Many people were put into an open-end lease and didn't realize they were guaranteeing the residual at the end. We don't offer open-end leases.  We offer closed end leases. In other cases, perhaps they exceeded the 15,000-mile per year allowance or had a charge back for abnormal wear and tear. If they had purchased the same vehicle and drove the same number of miles, or traded it in the same condition, they would have experienced the same deductions.

We won't let that happen to you. We tailor the lease specifically to your needs and let you know what your rights and obligations are up front.  

If you drive more than 15,000 miles per year you are an ideal leasing candidate. You can build the extra miles into the lease at .10 per mile or pay .15 per mile at the end of the lease. Which would you prefer?

.10 per mile is quite a savings for you. If you buy the same vehicle and drive the same number of miles, when you go to trade it in, they will deduct .25 to .30 per mile, over 15,000 miles, to get the appraised value. You can actually buy the miles you need cheaper in a lease than you can from yourself!

Don't feel bad, very few people do. Worse yet, some think it is renting. Leasing is probably the most misunderstood consumer transaction in America.

Unfortunately, what has kept many people from leasing is the fear of the unknown.

According to a survey by J.D. Power and Associates, once people have leasing explained and they try it, 93% of them are so satisfied they lease their next vehicle! We don't view leasing as just another way to buy a car. We view it more as an insurance policy. It removes the risk of the vehicle's depreciation. Leasing offers value; ownership does not.