Leasing and Buying Prices for Cars
From LoveToKnow Buy
When you are looking into leasing and buying prices for cars, the task can seem intimidating. Upgrading to a new vehicle can be both an exciting and terrifying prospect, but with a little research and knowledge the decision can be easier.
Make the Best Choice Between Leasing and Buying prices for Cars
Regardless if leasing or buying prices for cars are better, it a big investment. To start, think about your lifestyle and financial situation. If you commute or travel a lot, leasing may not be the best option since you are limited to the number of miles you can put on the vehicle per year. Similarly, if you like to customize your vehicle and prefer to not have constant car payments every year, purchasing may be a better choice. On the other hand, if you prefer to have newer vehicles and do not have a hefty commute, leasing may be a wiser decision for you.
Leasing Prices
When you consider leasing a vehicle, a high credit score and steady income will work in your favor. The lure of a new car lease is the promise of low monthly payments and always having a full manufacturer's warranty for needed repairs. However, keep in mind that you are not really paying for the car’s total value. Instead, you are paying the vehicle’s depreciating costs. If for some reason you cannot make your monthly payments and decide to turn in the vehicle early, you will be required to make a “balloon” payment on the rest of your contract.
So what is the vehicle with the best leasing prices? The answer is one with a low depreciating value. With a little research online, you can easily find out which cars keep their pricing steady and which aren’t worth your time. When you find the vehicle you want and are negotiating the terms with your auto dealer, keep in mind that since you are not purchasing, there is less flexibility with the price. Many will base it off the MSRP (Manufacturers Suggested Retail Price) since that is how many banks structure their loans. This is when your credit rating comes into play. The best leasing rates are available for consumers with a good score. Look out for these special rates, but find out about the cash deposit you will need to make and the monthly payments.
Another thing to consider when leasing a car is the amount of mileage. In a lease, the length of time you choose will also have a set number of allowed miles per year. If you go beyond the allotted miles, you will be charged extra money for the overage, perhaps up to 25 cents or more per mile, which can add up quickly.
Purchasing Prices
You have a lot of options when you want to buy a car. Due to current high gas prices and other financial issues, many car makes like Chevy, Hyundai, Toyota, Ford and Honda are offering more aggressive pricing. What this means to you is more rebates and a lower out the door price. Online, you can find invoice pricing on most major makes through their corresponding corporate website. Before arriving at the dealership, do your homework and find out the average price range of the vehicle(s) you are interested in. As with leases, if you have a better credit score, you can get better financing rates. Depending on the make of the vehicle, some may offer you the choice of rebates or a special low financing rate. When this option is available, in general it is better to get the rate instead of the rebate since you will end up saving more money in the long run.
If your credit rating is a bit challenging, you can still buy a vehicle. However, you will have to pay a much higher financing rate. In this case, the more money you have to put down, the better it will be for your monthly payments.
So what vehicles have the best purchasing price? Since the competition for the consumer’s business is high, you can probably find good pricing with most makes. In addition, many new vehicles have a great manufacturer’s warranty that comes standard with your purchase.
The only vehicles that do not have car-pricing flexibility are a newly released model year line, or models that are produced by the manufacturer in a limited supply (like a Z06 Chevy Corvette).
The Bottom Line
When it comes to leasing and buying prices for cars, it all comes down to your credit score and personal preference. Leasing is a better option for those individuals who do not put a lot of wear and tear on their vehicles and like to always have a new car with full warranty coverage. On the opposite side, purchasing a vehicle gives you more flexibility with pricing and you can drive it for as many miles as you like without the worry of additional cost. Upgrading to a new vehicle does not have to be a chore. Take your time and research online about all vehicles you are interested in. Now you are ready to make the trip to the car dealership and get the best price. Happy motoring!
By Sheila Robinson
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This page has been accessed 941 times. This page was last modified 15:42, 21 November 2008.
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