Car Buying 101: Leasing & Financing

CAR BUYING 101 LEASING & FINANCING CAR LEASING EXPLAINED You can return car after leasing period or choose to purchase it at the determined price given at time of leasing transaction based off residual values BUY RETUR, HONDA HAS ONE OF THE HIGHEST RESALE RATES IN THE MARKET YOU CAN CHOOSE YOUR MILEAGE options beforehand to decrease the likelihood of lease end fees PAYMENTS BASED ON DEPRECIATION, NOT TOTAL COST • Dealer predicts residual car value at end of lease · Residual value subtracted from purchase price (dealer) (value of car) (purchase price) $$$ (you) · You pay the difference over the term of the lease CAR FINANCING FACTS You pay total purchase price of car You own the car when payments are complete Car loan can be financed by bank or dealership Down payment usually required Leaning Towards LEASING? 1. PROS AND CONS PRO: LOWER CON: INSURANCE TENDS MONTHLY PAYMENT TO BE MORE EXPENSIVE BECAUSE IT'S A CURRENT MODEL YEAR VEHICLE PRO: NEW CAR EVERY FEW YEARS 2. WHAT YOU NEED Proof of income Good credit score o Tougher standards for a lease than for a loan No down payment, or a down payment to lower your monthly payment if you prefer Considering FINANCING? 1. PROS AND CONS PRO: YOU OWN THE CAR CON: MONTHLY PAYMENTS AT END OF LOAN TERM TEND TO BE HIGHER PRO: NO MILEAGE CON: IT'S DIFFICULT TO RESTRICTIONS SELL THE CAR BEFORE LOAN IS PAID OFF 2. WHAT Y OU NEED Proof of income Credit score o More flexibility for financing 10-15% down payment INFOGRAPHIC PROVIDED BY: HONDA LUNDGREN HONDA OF GREENFIELD LUNDGREN GREENFIËLD www.GREENFIELDHONDABLOG.COM Sources: http://www.edmunds.com/car-buying/should-you-lease-or-buy-your-car.html http://www.cars.com/go/advice/Story.jsp?section=fin&story=should-i-pay-cash&subject =loan-quick-start&referer= http://auto.howstuffworks.com/buying-selling/buy-or-lease.htm http://usnews.rankingsandreviews.com/cars-trucks/Buying_vs_Leasing/