In reality, leasing and loans are just two different methods of automobile financing. Leasing finances the use of a vehicle for a certain period of time, and a loan finances the purchase of a vehicle. The third option is to finance the purchase of a vehicle with cash, although fewer people actually do this. Our tool is the only tool available that lets you compare leasing to purchasing with cash and purchasing with financing. It is not possible to say that one of the three methods is always the best way to pay for a vehicle. The only proper way to do this is to look at all of the tax and financial considerations of the question. For personal use automobiles, the decision will mostly be a financial one. Leasing and purchasing will have significantly different cash flows, and a proper analysis must take these differences into account.
Alpha Leasing Company has developed the most comprehensive lease versus buy anaylsis available on the market today. Most sites give you a financial calculator that just adds up the payments and gives you the difference. Our financial calculator also takes other things into consideration. We look at what you are going to do at the end of the evaluation period. We also look at the differences in the timing of the cash flows between leasing and purchasing and what you are going to do with the money.
Leasing typically will have payments that are significantly lower than loan payments on the purchase. What are you going to do with this excess cash? If you stick it in the bank in a savings account you might be getting 3% on your money, but if you make extra payments on your credit card, you are in effect getting an 18% to 21% return on your money. This difference alone can make thousands of dollars in differences in your lease versus buy analysis. No one else goes into this detail.
For business-use vehicles, the tax law treats the buying and leasing of vehicles quite differently. In many cases leasing enjoys many tax advantages over purchasing. Lease Rates can help you determine if these tax advantages can help you save money.
No, Lease Rates will handle all of these details for you. So you can just relax and know your delivered car will be ready to drive right away!
Absolutely! Your Lease Rates delivery expert will walk you through all of the vehicle's features, so that you can become familiar with those before you get behind the wheel.
Once you are approved, Lease Rates will work to locate and secure your vehicle, and then will deliver the vehicle directly to YOU. This type of personalized, concierge-style service is not common. In fact, you will be hard-pressed to find a local dealer who will do this.
Lease Rates is able to connect directly to auto manufacturers' nationwide databases to locate the vehicle you want, with the specifications that you want. Your local dealers--as well as most other leasing companies--do not have this networking ability. Furthermore, if your desired vehicle is not immediately available, Lease Rates can custom-order it for you.
In most cases, only the credit application is required. Down payment is usually an option to lower you monthly payment if you desire.
Lease Rates will email a contract to you. You will need to E-sign the contract, and provide proof of Insurance.
Lease Rates make signing easy with E-signing. No waiting for the mail or having a high pressured salesperson telling you where to sign quickly. With Lease Rates you can enjoy reviewing your contracts in the comfort of your space. You will also have the option of making your monthly payments via checks or with automatic (ACH) withdrawals from your bank account.
Lease Rates will review your form and respond within one business day. If your application is approved, Lease Rates will email your leasing contract to you, for your review.
Just like a purchase, you will be responsible for any repair bills from that point forward. Therefore, consider a longer warranty contract.
GAP (Guaranteed Asset Protection) insurance protects you in the event that your car is stolen or totaled in an accident, by paying the balance between value and payoff. Many customers choose to include GAP insurance in their purchase or lease, because the cost is relatively low and it provides peace of mind.
Yes, Lease Rates can help you lease a car that you find on your own no matter where you fine your new vehicle.
Be careful. That advertised deal probably has some drawbacks that are not readily apparent. For example, the offer may be for a vehicle that has fewer features than what you want, may exclude hidden fees, or may have very low mileage per year, very short terms or require a large down payment. Also, you will have to actually visit the dealer's showroom, where you run the risk of encountering uncomfortable selling and negotiating tactics. In comparison, Lease Rates offers complete transparency and puts you in complete control! Lease Rates will not try to sell you a vehicle that you don't want or can't afford.
Here are examples of selling tactics you might encounter with a local dealer:
"We don't have that model with the black leather interior you want. But we do have one with tan leather that would be perfect for you."
"This is the only car like this around here, so you should act fast."
"Oh, our advertised lease price is just for the basic model. So let's look at one that has more features."
"There are some additional fees you'll have to pay as well."
If you trade-in your vehicle before you pay of off, in many cases the value of the vehicle is less than what you owe. You end up having to pay to get rid of your vehicle, and you may have to go through the hassle of selling your used car. Leasing eliminates this problem.
If yes, a 3-year lease might be appropriate for you. Your vehicle will almost always be under warranty.
Leasing may be a great option for you. Lease it for three or four years and then decide whether you want to keep it long-term or get rid of it. If you had bought the vehicle and decided to get rid of it at the end of three years, you may have to eat a several thousand dollar loss, and you also have to go through the hassle of disposing of the vehicle. Isn't just turning the vehicle in a much easier option?
There are significant tax advantages to leasing business use vehicles. Remember, this includes any vehicle that is used for business not just vehicles owned by a corporation. Are you an independent contractor, a real estate agent, sell Mary Kay? You qualify.
When you decide to get rid of your car you often have the choice of trading it into the dealer for less than it is worth, or putting an ad in the paper and going through the used car circus. Leasing eliminates this hassle.
When you lease a vehicle, your lease payment will typically be lower than the loan payment on buying the vehicle. However, you will always have a monthly payment. The payment will never go away like it eventually will if you purchase a vehicle.
Since most leases don't require a down payment and you are not building any equity, you generally must have a better credit rating than would be required for a loan. We oftentimes can get you approved, but bad credit is definitely an obstacle to leasing.
If you don't take good care of your vehicle, you may face some wear and tear charges when you turn it in. If you don't particularly take care of your vehicle , you might not want to lease because the excess wear and tear charges may be prohibitive. But remember, even if you purchase, you will still lose value when you resell or trade-in your vehicle.
No Down Payment Financing
Leasing eliminates the down payment that can be required when purchasing a vehicle. With 100% financing available, leasing allows valuable cash to be used for other purposes. If you want, you can make a down-payment to lower your monthly payments.
Lower Monthly Payments
With leasing you pay for the portion of the vehicle that you actually choose, not the entire vehicle. Since leasing is a lower cost means of financing your payment will typically be 25% to 50% lower than a loan payment, saving you hard earned dollars each month.
Get More Vehicle For The Same Money
A significant benefit of leasing is the option of driving a bigger, more expensive vehicle for the same payment when compared to buying. The choice is yours: The identical vehicle for a smaller payment, or a more expensive vehicle for the same payment. You should never get more vehicle than you can afford, whether buying or leasing.
Flexibility: payments tailored to individual needs
Leasing provides many options in creating a monthly payment best suited to your needs. Because of this flexibility, leasing a vehicle is easier than owning one.
Fewer Maintenance Problems
Leasing means that your car is under manufacturer's warranty for all or the majority of the lease term. You will have fewer maintenance issues and most will be covered.
In most states, you don't pay sales tax on the entire vehicle when you lease. You are only taxed on the portion of the vehicle you use, and the tax is spread out over the monthly payments instead of upfront lump sum. Tax laws overwhelmingly provide better tax benefits when leasing for business use, with the payment being fully deductible, except for the lease inclusion. This can be a major consideration for business vehicles under 6000 GVWR.
Leasing is Better for Your Credit
For individuals, leasing has less of an impact on your credit than a loan. For businesses, leasing is considered off balance sheet, and doesn't count against many loan covenants.
No Used Car Hassles
Leasing eliminates trade-in hassles. At the end of the lease, just turn in the car and keys to the leasing company. Plus, you have the option of purchasing it if you want.