Leasing FAQ's

Leasing Facts:

1. Vehicles depreciate in value. With a lease, you know what it is worth when you turn the vehicle in at the end of the lease term.
2. Lower monthly payments.
3. You get more vehicle for your money. Why have the Cheaper model when you can have all the options and still be in your budget.
4. No down payment.
5. Flexible mileage terms. Pick the one that is right for you. You don’t have to drive 10,000 miles a year. Tell us your annual mileage driven, and we will incorporate it within the lease term.
6. Close-ended lease agreements allows you to turn your vehicle in at the end of the lease term.
7. Gap Insurance available.
8. Warranty coverage. Don’t worry about car repairs.

Leasing Vs Buying

If you purchase a vehicle, you make your payments for 3 years. You have now decided that you wish to trade in the vehicle only to find that you owe 2,500.00 dollars more than what it is worth. Now your new payment will increase, unless you put enough cash down to cover the inequity. Your sales agent at the new car dealership will tell you that this is not a problem.

Now take a look. If you work the options from the car sales man and extend the term to a somewhat manageable payment, you are now purchasing two vehicles (your new one you finance and the negative equity of the old one you still have to pay) at once.

Break the cycle and lease with Jimmy McDavid at JMc Auto Leasing!

When you buy a vehicle, you pay for the entire cost, plus taxes and the car title. When you lease a vehicle, you are only paying intrest and principal for the portion of the vehicle that you use.

So next time your 3 year lease is up, your ready to get into the new vehicle you have had your eye on, you will not roll any negative equity into the next payment.

Which is right for me - To Lease or To Buy?

What are the initial costs involved? The biggest advantage over an auto lease rather than an auto loan is 1st REDUCED INITIAL CASH. There is generally a very low initial cash requirement by choosing the auto lease option - little or no down payment allowing you obtain an auto you have only dreamt of driving. Should you have a limited down payment or no vehicle trade in, leasing provides you more reasonable payments than a loan. If by chance you can afford a bigger down payment, monthly payments will be reduced even more. In generally, with a better credit rating, a lower cash requirement begins at the start of the lease.

Equity and Ownership. An auto lease provides you no equity. At the end of an auto lease, you do not own the car and you have no equity built up as you would if you purchased the car. However, if the car sells for more than your end of term wholesale value, the equity from the sale IS yours. With a loan to purchase a new car, you gradually build equity with every payment. You may want to consider how much you will pay to build this equity, over the course of the loan. It is possible that the car may be worth far less than what you paid for it, when the car is fully paid off. Owning a car is an asset, however, it is a continuously depreciating one. Many of our clients prefer to invest their money where the returns may be higher.

Taxes and Insurance. Most of the tax breaks that had existed at one time for purchasing a car, no longer exist. New tax breaks for leasing are available, however. In certain business situations, your down payment for a lease may be tax deductible. Please consult with your accountant for details. In most states, when you buy a car, you are required to pay all of the sales tax up front. When you lease a car, you can spread the sales or usage tax out (amortize) over the course of your lease in most cases.

Also, consider how often you would like to drive a new car. Auto leases have shorter terms than auto loans. If you would like to drive a new car every two to three years, a lease gives you that flexibility.

Auto Leasing Facts

Auto leasing is more popular than ever - leasing has grown ten times since the mid-eighties. In fact, 29-36% of the 15 million-plus cars sold in the United States are leased. Why is car leasing so popular? What are the advantages of auto leasing?

Leasing a Car is More Affordable
The First advantage of leasing a car is affordability. You could be driving a new car right now for little or no down payment. Your typical monthly payments on a 36 month lease with Global Auto Lease are comparable to a 60 month conventional term finance agreement. Wouldn't you rather pay less money down and less money every month?

Pay for What You Use
The second advantage of Auto leasing is simple. You only pay for what you actually use. When you lease a car, you only pay for the amount of the car's value that you are actually going to use, plus the interest. Why pay for the whole car when you only plan to use it for a few years?

Tax Benefits of Leasing
The third advantage is economic sensibility. Financial advisors and asset experts agree that you should purchase items that appreciate in value, and rent or lease items that depreciate in value. The majority of cars begin to depreciate in value as soon as you leave the dealership, and continue to do so. Also, there are many tax deductions that favor leasing. The average cost of driving a new car is rising faster than the average income. It makes economic sense to consider leasing your new car.