To Lease or Buy

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How to Make an Informed Decision About Your Next Car Purchase

Here is a report from one of our satisfied customers …
“You’ve just picked out a brand new car for yourself. You want it - bad. But should you buy or lease it? It’s a dilemma almost every new car shopper faces. Even I, the savviest of car shoppers, have been stuck with this decision. Fortunately, as I’ve learned from financial professionals, there is no right or wrong answer. Your decision should be based on your own needs.

Leases and purchase loans are simply two different methods of automobile financing. When you buy, you pay for the entire cost of the car regardless of how many miles you drive it. You typically make a down payment, pay sales tax and an interest rate. When you lease, you pay for only a portion of the car’s cost. You don’t have to make a down payment and you only pay sales tax on your monthly payment. At lease-end, you may either return the car, or buy it for its depreciated resale value.

All of this was explained to me by Darryl Deschamp and his finance manager over at Russ Mullin Ford Lincoln Mercury in Gulfport. They spelled out my options in simple terms that were easy to understand. They said that when making a ‘lease or buy’ decision you must look at not only financial comparisons but also at your own personal priorities.

Here are some questions they threw my way:

* Was having a new car every two to three years with no major repair risks more important than long-term cost?

* Or are long term cost savings more important than lower monthly payments?

Bottom line, leasing typically does not build equity, while buying does. The reason that a buyer has equity at the end of his loan is that he purchases the equity by making higher monthly payments.

* Leasing - lower payments, no equity.

* Buying - higher payments, partial equity.

So there you have it. With this information I was able to make an informed decision about how to buy my new truck - which, by the way, was a Ford Ranger. Thank you Russ Mullin Ford Lincoln Mercury for making that terrifying decision an easy one.”

How can we help you, today?

* In Mississipi, contact Darryl Your Car Guy at Russ Mullin Ford Lincoln Mercury in Gulfport, MS Phone: (479)-283-7147