Is it better to lease or buy a vehicle?

Is it better to lease or buy a vehicle?

Hi my name is renee houlihan and today i want to talk to you guys a little bit about leasing versus a purchase i do a lot of both here at bogota and sometimes my customers are really confused as to leasing they’re very hesitant because they feel like they’re gonna throw their money away and at the end of the lease all that money that they paid towards their vehicle

Is just going to go out the door so i just want to talk about a few pros and cons to either one and it might be a good choice for you to leave but then again maybe a purchase is a better deal for you so when you’re leasing a vehicle what happens is is what you’re doing is basically you’re paying for the depreciation of the vehicle on a monthly basis and you don’t

Pay for all the taxes you only pay for that month’s tax so say for instance if your payment is $300 on a lease so you say you’re you’re leasing a wrap for and your payment is $300 that $300 you’re gonna pay taxes on just that amount right there so maybe the lease payment is 300 but really the actual payment that you’re making is as far as equity is maybe 370

And the balance of that would be the tax so say you have a 3 to 36 month lease and you’re making your payments every month and at the end of the lease there is a residual or balloon payment and that residual is the amount that you’re going to owe at the end of the lease now that amount that you owe you have some options a lot of times my customers because their

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Credit is compromised they opt to lease a vehicle because they know that in 3 years it won’t be any problem to refinance the vehicle and you know better rate and they’re going to be making they’re building their credit as they’re leasing so they’re going to be able to benefit from better credit when do make a purchase because a purchase typically a little bit

Longer unless you of course want a higher payment and a lot of people not opt for the lower payment so if you are leasing a vehicle each one of your payments is definitely going towards making the whole of the vehicle down they’re going towards paying off that vehicle we call it a lease purchase because your lessee but you have the ability to purchase that vehicle

Again if you’re making your payments every month on time the credit bureaus are gonna recognize that and your credit is going to go up a lot of times to lease a vehicle you’re going to have better payments or lesser payments then you wouldn’t be purchased a vehicle so especially like save you want a tundra or a tacoma or a very high-dollar vehicle something that’s

Very expensive even a 4runner they are you know pretty crazy so a lot of times you can get $100 off of your monthly payment just because you’re leasing the vehicle and what happens is a lot of my customers opt to they’ll lease the vehicle for a few years and then they just go ahead and buy it out now when you’re leasing one of the concerns that people have is that

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It’s going to knock them from over mileage yes if you do turn the vehicle in and you do not purchase it and you do not trade it in your it’s going to go through an inspection process and anything that’s over the the mileage that you have an agreed upon at the time of your lease you are going to be responsible for and it’s typically 15 cents a mile so what you do if

That’s something that is a concern to you and you are going to be doing make it a lot of miles say you’re an uber driver and you’re going to be driving all over the place and yes i have leased vehicles to uber drivers but say you are an uber driver and you’re going to be driving all over the place and you’re wondering what should i do should i these i know i can’t

Afford high payments but i don’t want to be do deigned at the end of the lease well if you plan on buying the vehicle at the end of the lease and you’re raising your credit yes why not lease or if you plan on trading that vehicle in for another vehicle yes you can lease another pro to leasing is if you own a business one of the things that is really beneficial for

Business owners it is tax write-offs and when you make a payment to the words and appreciate depreciating items such as a lease and that’s what those payments are the depreciation over a month it is that you can write it all off so that’s another benefit to leasing so if you have any questions about leasing i would be happy to help you with that my number directly

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Is 602 three eight four six four three seven please give me a call or if you are curious as to what your lease payment would be on say maybe a tacoma you went and looked at purchasing a tacoma and it’s way out of your range but you really really want that off-road four-wheel drive tacoma and you want to know a way to do it give me a call the leasing is the best

Way to go if you want the payment low and if you plan on keeping that vehicle for a long time we can lease it and then you can go ahead and buy it out in two to three years there’s also 60 month leases as well and that at that point i would buy it out at three three years and you’re definitely gonna have equity in the vehicle as long as you your miles aren’t crazy

And you’ve kept it pretty you know decent you’ll definitely have equity in the vehicle so anyway that’s about it and thank you so much for watching and you just have a super good day this is rene moving it over here at belvoir the twitter and phoenix zona sunny now thanks okay

Transcribed from video
Is it better to lease or buy a vehicle? By Renee Houlihan