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Buy vs Lease: Side by Side Comparison

 Consider the long term ramifications of your financing deal.  Eighty three percent of those who finance their vehicle will trade them in before the loan has been fully paid off to zero.  Which means hat customer never owns "his" car.  Sound familiar? 

The reality is that 50 years ago, customers traded every 2 years because inflation was low and wages were in sync with the price of vehicles.  Today, that does not hold true making it very difficult to trade every 2-3 years.  Consumers still want to trade every 2 to 3 years, however when focusing on payment the financing term is now 5 to 6 years!  This creates the need to focus as much on term as payment.   Or in reality is term more important than payment?  Review the side by side comparison of this Lease vs Buy of a $30,000 vehicle.
 
              chevrolet cadillacbuick

                  Side by Side Comparison

                           Similar Terms

                                   BUY                   LEASE

                     Payment:      $1008                          $495
                           Term:     36 mos*                     36 mos **

                              With similar terms, a lease payment will 
                            be about 50-55% less than a buy payment.



                       Similar Payments

                                         BUY                     LEASE

                     Payment:    $597                             $495
                           Term:   60 mos***                    36 mos***

                             The shorter term means less out of pocket
                                expense for maintenance and repairs.



                        *Based on 36 mos, amount financed $30,000, 7% interest, $0 down, WAC.
                        **Based on 36 mos, amount financed $30,000, 3% interest, $0 down, WAC.
                        ***Based on 60 mos, amount financed $30,000, 7% interest, $0 down, WAC.







This Leasing vs Buying information was created as a reference for Kansas consumers considering their vehicle finance options.  As you continue learning about your Lease vs Buy options, remember the final decision is YOURS.  Holm Automotive Center is here to help those in Abilene, Kansas and surrounding communities with vehicle financing options.