Leasing:
No Simple Answers
"With the many financing products available
in today's extremely competitive automobile
marketplace, simple answers don't usually
apply in the decision to lease or buy."
Riley explains. For example, zero percent
financing on a typical 48-month vehicle
purchase, introduced in 1998, means
you simply pay the actual cost of a
vehicle plus taxes with no interest
charges. On a $30,000 vehicle, that
works out to $719.00 per month - and
you own the vehicle free and clear at
the end of the term.
"If you can afford this monthly payment,
this might be the best option when compared
on a strictly 'number basis' to leasing,"
he points out.
Manufacturers will often offer this
type of financing later in the model
year, when lease support is usually
less attractive from the manufacturers
viewpoint, Riley says.
"However, at other times of the year,
and with certain models, manufacturers
will support leasing with attractive
terms - anywhere between two to five
percent, less than half what banks charge."
He stresses that since full disclosure
on manufacturer-offered lease deals
became the industry standard in 1998,
consumers now have more to gain than
ever from leasing arrangements.
*
Article in MacLean's Magazine by, Craig
Riley, President, Markville Ford Lincoln,
TADA Member. |
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