Financing or leasing a vehicle may make it easier to get the car that you want at a price that you can afford. Generally speaking, leases last for two to three years while the average car loan spans five to six years. Let's take a look at some of the specific benefits of spreading the cost of acquiring a vehicle over several years.
Don't Deplete Your Savings Account with our Finance Options
Let's say that you have $5,000 in your savings account at the time that you want to buy or lease a vehicle. While you could put that $5,000 toward the cost of the vehicle, it could leave you unable to pay an emergency medical bill or unexpected home repair cost. By financing or leasing a vehicle, you could opt to put $1,000 down and pay the rest over time. In some cases, you won't need to make a down payment or can use the equity in your current vehicle as a down payment.
Enjoy Upgrading Your Vehicle Regularly When You Lease
Leasing a vehicle means that you're only obligated to make payments on it for 36 months or less. After the lease expires, you can turn in the car and start shopping for a new one. Generally speaking, you get the same warranty and other safety guarantees whether you choose to lease or buy. Also, there is generally no need to make a down payment when leasing a car.
Keep Your Equity Over Your Lease Term
Whether you choose to buy or lease a vehicle from Ed Koehn near Belding, it may be possible to keep any equity that you accrue on it. When you lease a car or truck, the manufacturer assumes that it will be worth a certain amount at the end of the lease period. However, if you drive fewer miles than the average person in Cedar Springs, there may be less wear on the vehicle. Ultimately, this will bolster the car's value, and you can cash out positive equity when the lease term expires. Cars may also hold their trade or resale value if they are properly maintained or made by trusted vehicle manufacturers.
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Finance