Either could be advantageous, depending on incentives offered by vehicle manufacturers, interest rates in
the market and even the time of year you're shopping for a vehicle. Leasing often results in a lower monthly payment because
payments cover only the vehicle depreciation - the difference between the purchase price and its projected value at the end of
the lease. If you drive an average number of miles and take good care of your vehicles, leasing may be a good option.
Financing, on the other hand, may be a better option for you if you plan to keep the vehicle for more than a few years or if
you simply prefer the idea of ownership. The easiest approach? After you pick out a car you like, simply ask your Sewell
business manager to show you a comparison of current financing and lease deals.
Can I get a better deal through a third-party leasing company?
Not likely. You see, leasing companies are middlemen, not new car dealers. They have to buy the vehicle
from a dealer before they can lease it to you. And in between, chances are they add some profit of their own on top of the
price they paid to the dealer. Then they figure your lease based on their marked-up price. By leasing from Sewell, you leave
out the middleman.
You're more likely to buy
When you lease a car, you are typically capped at 15,000 miles a year. Additional mileage can cost you up to 35 cents per mile. And that can really add up.
If you like to personalize a car, this investment can be lost on a leased car.
If you like the idea of ownership, you are less likely to be happy with the lease option.
If you like the feeling of accomplishment that paying off a large purchase brings and should consider that when you lease a car, the payment ends only when you return the car.
If the car you presently own is over 3 years old you are more likely a buyer. While not always true, you can usually drive for less if you're willing to buy and drive for at least 3 years.
If you don't mind doing your own car repairs, you probably don't mind driving a car after the warranty expires.
Lease arrangements usually involve a 15,000 miles-per-year cap and charge for extra miles. If you drive very little, you may be a candidate for a luxury lease.
When you negotiate a 24 or 36-month lease, you can be sure you'll always be driving a new vehicle.
Although you need to maintain and repair your leased vehicle just as you would an owned vehicle, because you typically lease for 2 to 3 years, the car is normally under warranty.
Many people prefer to drive a vehicle that is priced above their means and leasing provides the solution.
If you don't mind not owning the car, you are free to enjoy the benefits of leasing like low monthly payments and a low down payment.
If you own the company, and you use your car for business, check with your tax advisor. You may be able to deduct your auto expenses, including your monthly lease payment. And if the company you work for gives you a monthly car allowance, you may want to lease since you'll be able to drive a nicer car for a lower monthly payment.
