The decision to lease or finance depends on many factors, but most clients make the decision based on monthly payments and how long they typically drive their vehicles.
In general, clients who lease prefer to drive a new car every 2-3 years and appreciate making lower monthly payments. For certain business clients there may also be additional tax advantages with leasing.
Clients who finance their vehicles tend to drive them for five to 10 years and appreciate driving without mileage limitations.
Explore the detailed benefits of leasing and financing below.
Leasing Drive the Vehicle at Its Prime In a lease, you contract to enjoy a new vehicle for a specified period of time. You can also choose to lease one of our premier Certified Pre-Owned Vehicles. Less Cash Up Front One of the biggest advantages of a lease is that it does not usually require a substantial down payment. In many states, you can even pay the sales taxes as part of your monthly lease payment, rather than in a lump sum. Lower Monthly Payment If the finance period is the same, your monthly payments will generally be lower when leasing (vs. traditional financing) because your payments will be based on the vehicle's estimated depreciation. (You are contracting to use a portion of the car's value, rather than buying the entire car). A New Car More Often A short-term lease makes it easy to drive a new car more frequently. Plus, if life changes demand a larger or smaller car in a few years, a lease can make it easier to plan and adapt.
Guaranteed Future Value You don't have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term. But if it's worth more, you can purchase it. Tax Advantage for Business Use People who use a lease car for business may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.
Get the Most Out of Your Vehicle If you typically keep your vehicle for five to 10 years, then traditional financing may be your best option. With our competitive rates and flexible terms, Acura Financial Services™ just may be your best choice in financing your new vehicle. Ownership Equity Payment by payment, your ownership equity may increase. And the longer you drive the vehicle after your contract is complete, the more value you derive from your investment.
No Restrictions on Mileage This is important to consider if you drive more than 12,000 to 15,000 miles per year. Make Changes to Car's Appearance You can alter the interior or exterior to suit your taste (though your choices may affect the resale value).
APPROACHING THE END OF YOUR LEASE
that your lease is almost up, you may be wondering what's next. It's a
good idea to start thinking about your lease-end choices.
Acura Financial Services™ advises you to begin preparing for the end of your lease six months before your contract ends. That way you have time to weigh all of the options you have at lease-end.. With most leases you
generally have four options:
Option 1: Return Your Vehicle and Lease a New Acura. By leasing another Acura vehicle, you might qualify for Acura Loyalty Advantage benefits. This means you can have excess miles waived or unused miles rolled over into your next Acura Luxury Lease. Even if you return your vehicle and lease a new Acura, you will still need to schedule a free vehicle inspection during the last two months of your lease. Plus, you will be responsible for any outstanding payments, excess wear and use, excessive mileage, and any other outstanding obligations specified in your lease agreement.
Option 2: Return Your Leased Vehicle to the Dealer. Your lease concludes when you turn in the vehicle to an Acura dealer. You will need to schedule a free vehicle inspection during the last two months of your lease. Your Acura Luxury Lease™ includes an Excess Wear and Use Waiver, but you will be responsible for any wear or use that exceeds the waiver. You will be responsible for any outstanding payments, excessive miles, and any other outstanding obligations specified in your lease agreement.
Option 3: Purchase Your Leased Vehicle Buying your leased vehicle
is a great way to continue benefiting from its reliability,
performance, and high resale value. When you buy your leased Acura, you secure a vehicle with proven reliability and performance. If you decide to buy your vehicle, there is no need to have it inspected, since there are no excess wear or mileage charges to worry about.
To find out your purchase amount, you can get a
payoff from your financial institution.
financing rates may be available for lessees who wish to purchase a
leased vehicle. Ask DCH Acura of Temecula for details about our Lease
to Retail Rollover program.
Option 4: Extend Your Lease. If you're interested in keeping your
leased vehicle a little longer, or you just want to wait for a new
Acura to come in, well consider extending your current lease. You can,
in most cases, extend your lease for one or more months at the same
monthly payment. DCH Acura of Temecula can provide details about
extending a lease.