Leasing vs. Buying a New Vehicle
Leasing Advantages: Please keep in mind leasing is for everyone. Not just for business owners or large corporations.
- Low out-of-pocket cash.
- Low monthly payments. Because you only pay for the portion of the car or truck you use, your monthly payments are 30%-60% lower than for a purchase loan for the same vehicle and the same term.
- Sales Tax is only paid on the monthly payment. (vs. Total sales tax paid in full on purchase*)
- No trade-in hassle. (no negative equity on a lease since our leases are closed-end)
- You can purchase the vehicle at the end of the lease if you so desire.
- Ideal if you drive less than 25,000 miles per year.
- Leasing a vehicle allows you to have a new car every 3 – 4 years!
- More Car, More Often. Since your monthly payments are lower, you get more cars for the same money and drive a new vehicle every two to four years, depending on the term length of your leases.
- Fewer Maintenance Headaches. Most people like to lease for a term that coincides with the length of the manufacturer’s warranty coverage so that if something goes wrong with the car, the repairs are always covered.
- No Used-Car Hassles. With leasing, the headaches of selling a used car are eliminated. When your lease ends, you return it to the leasing company and walk away unless you decide to buy it or trade it.
- Gap Coverage Included. Most leases automatically include free “gap” protection if your vehicle is totaled in an accident or stolen and you still owe more than the car is worth. Loans do not generally come with gap protection.
Buying a car can lock you for five to six years in a lengthy contract. Leasing with Hollywood Motors Consulting grants you the luxury of changing cars sooner than if you buy a car. You can be driving what you want when you want, rather than being stuck in a car you’re sick of driving.
- For those who drive over 25,000 miles per year
- For those who keep their vehicle for over five years
- Vehicle manufacturers may have special financing available…which may equal the same low monthly payment as a lease or less over a longer term.
Cash Buyers Advantages:
- Great for fixed income or if you are retired
- No monthly payments!