Leasing Vs. Financing
You Have Options
When it comes to obtaining a new vehicle, we understand that you have options. At our dealership, we offer a compelling case for considering leasing as an alternative to financing or paying in cash.
Leasing provides a range of advantages that make it an appealing choice for many individuals. Allow us to enlighten you with leasing knowledge so you can make an informed decision.
Leasing 101: Understanding The Basics
Leasing a vehicle allows you to enjoy the experience of driving a new car for a predetermined period while paying only for the portion of its value that you intend to use. Instead of financing the full purchase price, you make monthly payments throughout the lease term. However, there is also an option to make a single payment upfront if you prefer. At the end of the lease, you have the flexibility to return the vehicle and lease or purchase a new one, buy your current vehicle, or simply walk away.
Why Lease Through Our Finance Lenders?
When you choose St. Helens Auto center for your leasing needs, you unlock a world of perks. We strive to provide you with a first-class ownership experience from beginning to end. Our attractive lease offers and flexible terms are designed to cater to your lifestyle and preferences. Working with an abundance of Financial Lenders, we will provide you with the best leasing options.
The Benefits of Leasing
Drive Newer Vehicles: Leasing allows you to experience the latest advancements in technology and safety features by driving a new car every few years.Lower Monthly Payments: Compared to purchasing, leasing often offers lower monthly payments since you only pay for the portion of the car's lifespan that you use. Additionally, many leases require minimal or no down payment, freeing up funds for other priorities.
Full Coverage: Lease terms typically align with the factory warranty period, ensuring that major repairs are covered, providing you with peace of mind.
Flexible Terms: Selecting a lease term that suits your needs is easy, as there are various options available. Lease terms are typically shorter than traditional finance contracts.
- NEWER VEHICLES: Leasing gives you the opportunity to drive a new car every few years with the most advanced technology and safety features.
- LOWER PAYMENT: Monthly payments are usually lower, compared to a purchase because you are only paying for the portion of the car’s life that you use. Plus, many leases require little or no down payment. This frees up disposable funds for things like education, investments, savings or other priorities.
- FULL COVERAGE: The term of most lease contracts coincides with the factory warranty period so major repairs are typically covered.
- FLEXIBLE TERMS: The term is the length of time a car is leased, usually expressed in number of months (typically 24-36 months). There are several options to choose from when selecting your lease term. Lease terms tend to be shorter than traditional finance contracts.
- SIMPLE TURN-IN PROCESS: At lease-end, you don’t have to worry about trading in or selling your vehicle. As long as you’ve fulfilled all of your lease obligations, you can simply turn in the vehicle.
- SIMPLE TURN-IN PROCESS: At the end of the lease, you can avoid the hassle of trading in or selling your vehicle. As long as you've fulfilled your lease obligations, returning the vehicle is a straightforward process.
Explore Leasing Terminology
To help you navigate the leasing process, familiarize yourself with these common terms used by lenders and dealerships.
Why Choose Leasing
Leasing provides an excellent solution if you desire the benefits of driving a new vehicle every few years, prefer lower monthly payments, want to maximize the value you receive from your budget, or wish to avoid the responsibilities associated with selling or trading in a car outright. We're here to assist you in finding the perfect fit for your specific situation.
- ACQUISITION FEE: A fee charged by the creditor or lessor at the beginning of a lease term to cover administrative costs.
- ADJUSTED CAP COST: The negotiated price of the vehicle, including any trade allowance, down payment, incentives, and rebates that may have been applied to reduce the capitalized cost.
- ANNUAL PERCENTAGE RATE (APR): The cost of credit for one year expressed as a percentage. It represents the yearly interest rate on a lease or loan.
- CAPITALIZED (CAP) COST: The total cost of the vehicle, including any additional items financed over the lease term, such as service contracts or add-ons.
- CAPITALIZED COST REDUCTION: Any amount that reduces the capitalized cost, such as a down payment, trade-in value, or incentives.
- CLOSED-END LEASE: The most common type of lease, where the lessee has the option to return the vehicle at the end of the lease term with no further financial obligation, provided all other lease terms have been met.
- CONTRACT MATURITY DATE: The date when a lease contract ends, and the lessee is required to return the vehicle.
- DISPOSITION (TURN-IN) FEE: A fee specified in the lease contract, payable at lease-end if the lessee decides not to purchase the vehicle and instead returns it.
- DOWN PAYMENT: An initial amount paid at the beginning of a lease or purchase to reduce the amount financed or the capitalized cost.
- SINGLE-PAY LEASE: A lease in which the lessee makes a single upfront payment instead of monthly installments. This payment covers the entire lease term, resulting in lower finance charges.
- EXCESS WEAR AND USE: Refers to the normal wear and tear that occurs during the lease term. At lease-end, the condition of the vehicle will be evaluated, and charges may apply if wear and use are considered excessive.
- GAP (GUARANTEED AUTO PROTECTION) COVERAGE: Coverage that protects the lessee in the event of a total loss or theft of the leased vehicle. It covers the difference between the insurance settlement and the remaining lease obligations, ensuring the lessee is not responsible for any shortfall.
- LEASE-END: The completion of the lease term, at which point the lessee has the option to return the vehicle, purchase it, or lease a new one.
- MONEY FACTOR: A finance rate for a vehicle lease expressed in decimal form. It is used to calculate the finance charges each month during the lease term.
- PURCHASE OPTION: The option for the lessee to purchase the leased vehicle at the scheduled end of the lease term for a predetermined price stated in the lease agreement.
- RESIDUAL VALUE: The estimated value of the vehicle at the end of the lease term. It is predetermined at the beginning of the lease and affects the monthly lease payments.
Make an Informed Decision
Leasing a vehicle offers a unique set of advantages, and it may be the perfect solution for your needs. If you enjoy driving a new car regularly, desire lower monthly payments, want more value for your money, or prefer a hassle-free approach to vehicle ownership, leasing could be the right choice for you. Let us help you explore your options and find the best fit for your particular situation.
Contact us today to learn more about our leasing programs and how we can assist you in making a well-informed decision.