Lease vs Buy a car | Denver, Highlands Ranch, Northglenn| Flexible leasing options

lease vs buy a car in Denver
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Leasing Versus Buying a Car Comparisons

Should I Buy or Lease a New Vehicle?

There is no easy answer to this question. Some will that say, "Say no to leasing" and others who endorse the practice. The  answer is:  it depends on you and your lifestyle and what you want out of a new car.

Below is a comparison of buying versus leasing a new car in Denver:

Auto Financing

Buying and leasing are simply two different types of financing which achieve the goal: getting the customer in a new car. One is used to finance the purchase of the vehicle - meaning the customer has ownership and the other is used to finance the use of the vehicle over a period of time.  

Neither option is better than the other but each option will fit your needs in different ways. When you look beyond the financial comparisons of buying and leasing you'll see a whole list of questions about your priorities:

  • For 2-3 years, when leasing, you won't be responsible for paying for major repairs due to components breaking down. With leasing most care is covered by factory warranty your costs for this will be very low cost or even free.
  • Do you drive your car for 8-10 years so you get maximum value for your purchase?  If so, then buying may be right for you.
  • In an average year, do you drive 12,000 miles or more... typically you may be better off buying rather than leasing.
  • Are you part of the military and anticipate being sent overseas in the next 2 years for a long-term deployment?  If that's the case then leasing may be your best option.
  • From a financial perspective, do you need the lowest payments possible at this point in your life?  Leasing typically offers lower monthly payments when compared to buying.

What happens when my payments are over?

When you buy a car, you own it, without a lien, after you've completed all of your payments.  You can do with the car what you wish at that point without fear of having to make more payments. 

When your lease term is up you typically have five options:

  1. Buy it and keep the vehicle.
  2. Buy it and sell the vehicle at a profit (assuming the market value is above the residual value).
  3. Buy the vehicle and then trade it in for another vehicle, either new or used (again assuming the market value is above the residual value).
  4. Extend the lease and continue to drive it.
  5. Return the vehicle to the dealer with no resale or trade-in hassles and then make the decision if you want to buy or lease a new car.
Thoughts to Ponder if You Use Your Car for Business:

Are you an Employee or Self-employed and will the Business own the vehicle or the employee? There are differences if you are self-employed and if you have a W2. Learn about IRS Business Expense

Do you think you are going to drive more than 10-12k a year? If so then take into account the additional costs for excess mileage.

How many miles do you drive for business? Learn about what is deemed tax deductible if you lease a car for business.

What is the approximate percent of miles will be used for business?
When you lease a vehicle, even if you use the car 100% for business, the IRS requires a "lease inclusion cost." Learn about IRS Transportation. See IRS Publication 463 for computation table.

Do you have a second car for personal use? Learn about Business Use of Car IRS Topic 510

Are you able to keep detailed records on your vehicle mileage? It is essential that you keep a detailed vehicle expense log and record business miles and expenses. It's necessary to maintain mileage logs because you will need to determine what percent of the Actual Expenses you will be able to deduct. IRS & Transportation
Benefits of LeasingShop ModelsView Lease Offers

Ask a Leasing Specialist a Question

Price reflects IDL Lease and Conquest Lease Rebates. Price applies to Ally Lease. Conventional purchase rebates will be less. Internet price includes dealer handling but does not include applicable county and state fees, taxes, title or registration. Not all customers will qualify. Subject to Ally Financial approval.

Contact

Larry H. Miller FIAT Denver

505 S Havana St
Directions Denver, CO 80012

  • Sales: 303-536-5592?
  • Service: 303-536-5592?

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