Buy or lease, Chicago

Fleet accounts February 13, 2014
 

Lease? Or buy? These are the options for Chicago car financing. It's always a tough question for Chicago auto owners. But here is some info that'll help you make an informed decision.

If you buy, you'll pay the full cost of the car, with maybe an initial down payment, then monthly payments on the balance that pays down the loan principal, and the finance charge.

Chicago auto owners who lease, finance the portion of the cost of the car that's used up during the term of the lease. You'll pay some money up front; fees, security deposit, first month's payment and maybe a capital reduction. The monthly payments include a depreciation cost and a finance charge. When the lease is up, you return the car to your local Chicago area dealership. 

So how do Chicago auto owners decide?

First, how much do you have for a down payment? A lease usually requires a smaller down.

How much monthly payment can you afford? Again, lease payments will be much lower for any given down payment.

A lease needs requires better credit, so that's a factor.

How long will you keep the car? Chicago auto owners who keep their cars around for a while will pay less if they buy. But just two or three years? Then leasing is the way to go.
Triangle Auto Service
4060 N. Elston
Chicago, Illinois 60618
773-539-5858
If your car might suffer a ding or two, like, say a work truck would, then buying's better. The Chicago auto leasing company will want their vehicle back at the lease end in tip top shape, and if repairs are needed, you'll pay.

How many miles do you drive in and around the Old irving park area? Important to consider because leases have a mileage limit, and if you go over, you pay a hefty charge per mile when the lease is up. So high mileage Illinois auto owners should definitely buy.

Will the car be used in your Chicago business? Check with your Chicago accountant, but both financing options have different tax benefits, depending on your circumstances.

Over the short term, leasing is much cheaper for Chicago auto owners. Medium term, leasing and buying costs are about the same. Over the long haul, leasing always costs more in Illinois.

Leases may sound a bit complicated, and the typical lease decision weighs more on the monthly payment, rather than price. So sometimes Chicago leasers may pay on a higher purchase price than a buyer would.

Here is a tip: If the Chicago salesman asks if you'll be leasing or buying, say you're not sure yet. Make your best deal, then look at your Chicago financing options.

Here's another: With a buy or a lease, if you total the car, you'll owe the full amount of the loan, or the balance of the lease payments, and usually, it's less than the car's fair Chicago market value  and that's all your Illinois auto insurance company will pay. But ask your Chicago agent about gap insurance, which pays the difference between fair market value and what you owe. Big consideration for a lease.

Remember, you have to return your leased vehicle in excellent condition, and may need to do all the automobile manufacturer's recommended service and maintenance, or face penalties. So see your local service specialist at your Chicago auto repair shop  or Triangle Auto Service on a regular basis, get the required work done and save the service records. It's well worth it.  Triangle Auto Service 4060 N. Elston Chicago, Illinois 60618 773-539-5858 www.triangleradiator.net. www.triangleradiator.com, www.triangleradiator.net, www.chicagobrakerepair.com



 

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