When it comes to buying or leasing a
car, the options can be confusing. To help you make an informed decision
we have provided the information below. We hope you find it informative
and useful.
When you buy the new or used car you pay for the
entire cost of the vehicle. When you lease the new or used car, you pay
for only a portion of the vehicle's cost, which is the part you use
during the time you are driving it.
Â
| Â Buying | Â Leasing |
| Â Who Owns It? | Â Who Owns It? |
| Whether
you pay for the car with cash, or finance it and make monthly payments,
either way it's yours. Of course, if you're financing it, you'll have
to meet the obligations the lender requires, like a certain down payment
amount and timely monthly payments. If you don't, they have the right
to repossess it. | You
do not own the car when you lease. You're paying for the use of the
vehicle, but the finance institution that you leased it through actually
owns it. This is usually why you pay less per month in a lease than if
you were to buy the car. |
| Â Up-front Costs | Â Up-front Costs |
| If
you're financing it, the bank will probably request a down payment. You
can also trade-in another vehicle and use any equity towards your down
payment. The amount of the down payment is usually based on the lender's
requirements and your credit score. | Leases
often do not require any type of a down payment. All you usually have
to pay is the first month's payment, a security deposit, the acquisition
fee and other fees and taxes. But, as with a purchase, if you want to
lower your monthly payments you can always pay more upfront. |
| Â Future Value | Â Future Value |
| Your
vehicle will be worth whatever you can sell it for in the future and
that depends on how well you maintain it. (Be smart and protect your
investment with regular scheduled maintenance by a factory-authorized
facility!) | Â In most leases
you don't end up owning it so you don't end up selling it. That's the
financial institution's job. Although you may have mileage limits and
wear and tear guidelines that, if you exceed them, could cost you extra
money when you turn your vehicle back in. |
| Â End of Payments | Â End of Payments |
| Once
you've paid off what you owe on your contract, that's it. Your vehicle
is 100% yours. The lending institution will send you a Lien Release as
proof that the vehicle is completely paid off and all yours. | Most
people return the vehicle at the end of the lease term. But some like
to purchase it during their lease or at the end. Others like to trade it
in before their lease is over. Just ask us about these different
options before signing any paperwork and we'll make sure you have your
lease set up the way you want it. |
| Â | Â Best Cars to Lease |
| Â | The
best cars to lease are those with the best book value after the term of
the lease. Since they depreciate less, you pay less. Review the lease
ratings to see which cars retain their value. |
| Â | Â |
Contact
Bob Penkhus Mazda at Powers
7455 Test Drive
Colorado Springs, CO 80923
- Sales: (719) 785-9666
- Service: (719) 785-9600
- Parts Center: (719) 785-9601
Hours
- Monday 9:00AM-7:00PM
- Tuesday 9:00AM-7:00PM
- Wednesday 9:00AM-7:00PM
- Thursday 9:00AM-7:00PM
- Friday 9:00AM-7:00PM
- Saturday 9:00AM-7:00PM
- Sunday Closed
