Leasing vs. buying a car?
Looking to get a new ride? Our guide will help you figure out whether it's smarter for you to lease or buy.
Transcript
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Red and black box similar to a chat window appears with the following words.
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Leasing Vs. Buying a Car Use This Guide to Decide Which Option is Best for You
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Black box appears with subject typed into field. Sub question appears beneath black box.
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Leasing Vs. Buying a Car: What's the Difference?
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Blue illustrated car drives across the screen and transitions to a comparison table of buying versus leasing with the car at the top of the table.
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Buying Payments: CASH in full or MONTHLY LOAN payments Ownership: YOURS AFTER LOAN is paid off Terms: Average loan term: 66 Months (1)
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Leasing (2) Payments: Monthly for FIXED TIME PERIOD Ownership: DEALER Terms: Average lease term: 35 MONTHS
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1 EXPERIAN INFORMATION SOLUTIONS INC: STATE OF THE AUTOMOTIVE FINANCE MARKET QUARTER 2014. HTTP://WWW.EXPERIAN.COM/ASSETS/AUTOMOTIVE/ WHITE-PAPERS-AUTO-2014-04-PRESENTATION.PDF? WT-SRCH.AUTO_042014FINANCETRENDS_PDF 2 EXPERIAN INFORMATION SOLUTIONS INC: STATE OF THE AUTOMOTIVE FINANCE MARKET QUARTER 2014. HTTP://WWW.EXPERIAN.COM/ASSETS/AUTOMOTIVE/ WHITE-PAPERS-AUTO-2014-04-PRESENTATION.PDF? WT-SRCH.AUTO_042014FINANCETRENDS_PDF
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Red box appears with subject typed into field.
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Pros
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Green illustrated car drives across screen to transition. Another illustrated image of the car appears on screen. The car is red with several color choices (tan, blue, green and red) beneath the car as well as three different model types (EX, LX and Sport). Car begins to change to various colors and styles representing the above choices selected. A For Sale By Owner sign appears next to car illustration, then an illustration of an envelope with cash sticking out of it appears, then again an illustration of a graphic that illustrates the percentage pointing down.
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Flexibility to sell when you want -Eventually payment-free -Lower insurance premiums
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CONS
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Illustrated silhouette of a man with his car behind him. An illustrated image of a wrench working on a pipe appears in the next column. Then a graph showing this year's decline in the market appears in the far right column.
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-Trade-in and selling hassles
-Higher maintenance costs
-Rapid depreciation
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3 Bankrate.com http://www.bankrate.com/calculators /auto/lease-buy-car.aspx
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Red box appears with subject typed into field.
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Pros
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Red illustrated car drives across screen to transition. A visual showing the side-by-side comparison of cost appears. Then a small and large stack of dollar bills appear showing the difference in down payment. A pair of keys is also added to the graph illustrating a new car, then a car with a wrench icon is added to illustrate maintenance.
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-Lower average monthly payments than an auto loan: $408 vs $482 (4)
-Lower down payment -Taxes: No upfront sales tax payments; Tax advantages if used for business purposes
-Ability to own new car every few years -Most repairs covered by factory warranty
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4 EXPERIAN INFORMATION SOLUTIONS INC: STATE OF THE AUTOMOTIVE FINANCE MARKET QUARTER 2014. HTTP://WWW.EXPERIAN.COM/ASSETS/AUTOMOTIVE/ WHITE-PAPERS-AUTO-2014-04-PRESENTATION.PDF? WT-SRCH.AUTO_042014FINANCETRENDS_PDF
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CONS
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Odometer tracking mileage.
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Limited mileage: typically 12,500 to 15,000 miles per year (5)
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Scissors cutting up contract.
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Early termination can be costly
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A rip appears on car's interior seat.
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Potential penalties for general wear and tear
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Questions to Consider
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Yellow illustrated car drives across screen to transition. Five boxes appear in a column on the left side of the screen. A question mark appears in each box as the questions appear.
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-How long do I keep the vehicle?
-How many miles do I drive annually?
-What is my monthly budget?
-Can I afford higher insurance premiums?
-Will my lifestyle choices, such as pets or children, affect the car's condition?
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State Farm logo
