Wise Investment, Wise Money It is often said that a wise investment is an investment you make knowing that the end result will bring you a handsome return. With that thought in mind, think back to the vehicles you have purchased throughout your lifetime, from your very first car, truck or SUV to the vehicle you are currently driving. Now think about how often your vehicle has provided a positive return on your investment throughout these years. Not too often, right?
If you could save 30 to 40 percent, wouldn’t you? Okay, let’s think about another perspective. Let’s say you are going to go to your bank and borrow $35,000 for a particular purpose, be it home improvement, a new boat, new furniture or a family vacation. You do your budgeting and estimate what it is that you will need in order to accomplish this task you have in mind. Then you sit down with the bank representative, put forth your plan and give the details of what you are going to do with the $35,000 you want to borrow from the bank.
At this point, you have taken into account your own financial abilities and forecasted the repayment of this loan. You have determined that $35,000 is exactly how much you will need and more importantly, how much you can afford.
Imagine at this point that your loan officer looks at you and says, “We will gladly loan you the amount you requested.” Then he or she lays out the structure of the loan and says, “You will pay an estimated $880 per month over the next 48 months with an annual percentage rate (APR) of 9.50 percent.” Wow! That is a large commitment to take on over the next four years.
Now, what can a lease do for you? Did you know that through leasing, you can save a great deal of money both in the beginning and throughout the term of the lease? You can save as much as 30 to 40 percent in comparison to conventional financing.
It is like the same bank representative saying, “With this loan, you will only be obligated to pay back 65 percent of it over the next four years.” What? So you get to use 100 percent of the loan and only have to pay back a little more than half of its original value? Well, yes!
On the other hand, imagine that your lease consultant looks at you and says, “We will gladly provide a lease for the amount you requested.” Then he or she lays out the structure of the lease. Your lease consultant tells you, “You will pay an estimated $610 per month over the next 48 months with a money factor of .00315, which is equal to an annual percentage rate (APR) of 7.50 percent.” You can see the significant savings in this example, since in most cases, a lease will save you $150 to $250 per month over financing. This also equals a savings to you of between $1,800 and $3,000 per year. Personally, there are a lot of ways I could use that kind of extra money. Couldn’t you?
Now, if you find yourself trading from one vehicle to the next and always having a car payment, you are an ideal candidate for leasing.
Always remember to invest in what appreciates and lease what depreciates. The key factor to understanding leasing is that it gives you options. Also remember your vehicle is a necessity; however, paying too much for your vehicle is not.
Leasing has many positives, so make the sensible choice and lease your next automobile; if you do, you will discover the savings.
Still have questions? Please feel free to contact a professional lease consultant to get a free quote and to discover if leasing your next automobile is the right decision for you.
