Leasing vs. Buying

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In this presentation, we’ll walk you through the major differences between auto leases and purchases – then you can decide on the path that works best for you.

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Leasing vs. Buying

  1. 1. swapalease.com Leasing vs. Buying
  2. 2. Is it Better to Lease, or Buy a Car? • A common question car shoppers have is whether they should lease or buy their next car. • In this presentation, we’ll walk you through the major differences and pros and cons of leases and purchases – then you can decide on the path that works best for you.
  3. 3. How Auto Leasing Works • Leasing is a way of financing the use of a vehicle. – Auto leasing is commonly misunderstood to be the same as renting. • While under a lease agreement, you pay for a portion of the vehicle’s value through monthly payments. – Think of this “portion” as the part of the vehicle you use up – keeping in mind how the value of a vehicle continuously depreciates while it’s on the road.
  4. 4. How Auto Leasing Works • Let’s say you lease a car that costs $25,000. • At lease end, the residual value of the vehicle is $18,000. • During your lease term, your total payments are equal to the $7,000 depreciation. – If you wish to buy the vehicle at lease-end, you will pay the remaining $18,000 dollars.
  5. 5. How Auto Buying Works • When you buy a vehicle, you pay for its entire cost. • Unlike a lease, buying a vehicle typically includes a down payment, high monthly payments, and full sales tax. • Once it’s paid off, you own the vehicle. But, it’s worth less that what you’ve paid. – However, you are free to sell, trade, or drive the vehicle as you please.
  6. 6. The Pros and Cons of Auto Buying Pros • No restrictions on mileage or modification • Builds personal equity • More flexibility in the event of a lifestyle change • The end-result is owning a car without any restrictions or monthly payments Cons • Higher monthly payments • You become responsible for repair costs once the warranty expires • In order to recoup some of the costs of ownership, you will face the challenges of either selling or trading the vehicle
  7. 7. The Pros and Cons of Auto Leasing Pros • Lower monthly payments • Typically the vehicle is under warranty • Get the latest in auto technology and safety every few years • No hassle of selling or trading. Cons • Excess wear and tear concerns • Limited mileage • Sometimes higher insurance premiums
  8. 8. Which is Best? • Whether you choose to lease or buy will largely depend on your personal preferences toward ownership and convenience. • If you have never leased a car before, a short term lease may be the best way to test drive the process.
  9. 9. About Swapalease.com • Swapalease.com is the world’s largest vehicle lease marketplace. • Our goal is to match individuals who want to get out of their lease, with individuals who are looking for short-term leases with attractive payments and no money down.
  10. 10. Follow Us & Learn More • Join the conversation on car news and leasing on the Swapalease.com Facebook page. • Follow auto and leasing trends at the Swapalease.com Twitter account. • Circle Swapalease.com on Google+ for the latest updates. • For tips and tutorials on transferring your lease, check out the Swapalease.com blog.

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