Depending on your unique requirements, there are two ways to get a new car; buy it or lease it. Before making this decision, it is imperative that you analyze your financial position and vehicle use.
Purchasing a car:
For most new car buyers, this means financing the purchase over time and making regular payments during the period. After a certain amount of time, the car is now actually owned by the buyer and not the financial services company. A car that is owned outright has a certain amount of equity; this amount can be applied to the purchase of a new car from a car dealer in Crestwood when it is used as a trade-in. For those who plan on keeping their car for a long time, buying it either outright or through a financial arrangement, makes sense.
Leasing a car:
Leasing a car from a car dealer in Crestwood is similar to renting the vehicle for a specific period. The amount paid every month is based on what the value of the vehicle is expected to be at the end of the lease period. This amount is the “residual value” and is based on historical resale values along with insight as to which way trends are pointing. The higher the potential resale value, the lower the rate of depreciation; the result is a higher residual value. When the lease period is up, the depreciation will have been offset by the regular payments and the leasing company can now sell the vehicle on the open market.
The initial payment due when leasing a car is less than what is expected in the way of a down payment on a purchased vehicle. Reasonable monthly payments often make it possible to get a more expensive car than if it was purchased.
Hawk Ford of Oak Lawn is a car dealer in Crestwood. Discuss your specific vehicle needs with experts that can help you decide if an outright purchase or a lease plan is best for your circumstances.
