Things to know Before Buying or Leasing New Vehicles

By Product Expert | Posted in FAQs, Helpful Advice, Lease & Finance, Tips & Tricks on Friday, June 23rd, 2017 at 8:33 am
Car Lease Considerations and Financing Frequently Asked Questions

Car Lease Considerations and Financing Frequently Asked Questions

When it comes to vehicle shopping, the easy part is choosing which model you’re going to get, and which features you’re going to add to it. The more difficult part is figuring out the inner workings of how you are going to pay for the vehicle in question. Luckily for you, we’re going to put together a list of car lease considerations and financing frequently asked questions to help you through this process.

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Why Should I Lease a Vehicle?Woman holding keys and smiling giving a thumbs-up sign

Leasing a vehicle means that you have the right to use a certain vehicle for an agreed-upon number of months and miles. At the end of the lease, you can return the vehicle and pay any end-of-lease fees or charges. You could also buy the vehicle for an additional price that you and the dealer have agreed upon if you have a purchase option, which could be a provision in certain lease agreements.

When you choose to lease, you gain certain benefits:

  • You’ll have less commitment to the car in question.
  • You’ll be able to get into new cars faster and easier.
  • You will generally pay a smaller down payment versus buying.
  • The monthly payments on a lease usually are lower than monthly finance payments on the same vehicle.

Leasing is a great option for some, but you must weigh your own individual needs and decide if leasing or buying is right for you. Buying also carries a number of associated benefits:

  • You keep the car in question.
  • If you choose to purchase a new vehicle again, you will have a trade-in that can help you to pay for some of the costs of the new car.
  • You don’t need to worry about the condition the car may be in upon return as you own the vehicle yourself.

Family at a dealership talking with dealer and smiling happilyWhat is Direct Lending vs Dealership Financing?

One of the most important parts of buying a new vehicle is understanding the options you have to pay for that vehicle. You could pay upfront, but more likely than not, most people choose to finance. This makes understanding the difference between direct lending and dealership financing incredibly important.

  • Direct lending is when you get a loan directly from a bank, finance company, or credit union. Once you decide to buy your vehicle, you then use the loan from the direct lender to pay for the vehicle. The benefits of choosing direct lending are that you can shop around through several lenders and you can know your credit terms in advance before you even go shopping.
  • Dealership Financing is when you get financing through the dealership. You and the dealer enter into a contract where you buy a vehicle and agree to pay, over time, the amount financed. A dealer may retain the contract, but usually will sell it to a bank, finance company, or credit union that services the account and collects your payments. The benefits of financing through a dealership include convenience, multiple financing options, and special programs dependent on availability and credit approval.

There are benefits to both scenarios, but you’ll have to personally decide which is right for you. Here at Serra Mazda, we make the decision process easy through our online finance tools. We offer helpful calculators like Online Pre-Approval, Value Your Trade, Credit Score Calculator, and Calculate Payments. You can also contact us with any questions regarding financing, credit approval, trade-in value, or anything else you may be curious about or have questions regarding.

READ MORE: 2017 Mazda Vehicles with the i-ACTIV AWD System

Get New Kia Mazda Models at Serra Mazda

If you have questions regarding financing or leasing, give us a call! We are happy to help you come up with a plan that is right for you. We have an experienced team of helpful salespeople that are always willing to go the extra mile for our customers. To ask questions regarding new models, financing options, or lease terms, contact us at Serra Mazda. You can view all of our new Mazda models in our online inventory and then contact us to schedule a time to sit down and talk over car lease considerations and financing frequently asked questions.

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