If your car has been wrecked or has broken down, or if you are just ready to start driving something newer and in better condition, you might have been shopping around for a car that you can buy. Even if you have seen some options that you were interested in and that you think you can afford, however, you do have another option that you may want to consider before making any moves: Oklahoma City car leases. These are some of the ins and outs of car leases that you might want to know about if you are thinking about taking this route.
What are the Differences Between Oklahoma City Car Leases and Buying a Car?
First of all, you could be wondering what types of differences you can expect between a car lease and a car purchase. Of course, the two processes are considerably different, but they can both result in the same thing — you having a nice new car to drive.
Of course, the value of the vehicle that you lease will make a difference in how much you have to pay for your lease payments. However, you will not be making payments on the full price of the car like you would be if you were buying it. Instead, the amount that the car will depreciate while you are driving it will be calculated. Then, you will be expected to finance and pay for this amount. No matter what type of car you choose to lease, this amount will be much less than the amount of actually buying the car itself. In fact, it’s often a lot less than the amount of buying a cheaper car if you purchase it rather than leasing it.
If you decide that you do want to lease a car rather than making a purchase, the first thing that you are going to need to do is to choose a car that you want to lease. The cars that you will be able to choose from should be brand new, so you do not have to worry about driving an old, worn-out car as you might have to do if you chose to buy a used vehicle. Once you choose your leased vehicle, you will given an amount that you will need to pay to lease it.
Then, you can begin working on financing the lease price. As with buying a car, your credit score is generally going to be taken into consideration, and the lender will probably look at your income and your debt-to-income ratio. If you have bad credit, you may find that paying for a chunk of the lease upfront will help you get approved, just as making a bigger down payment on a car can also help you get approved for financing. If you have the cash to pay for the entire lease upfront, this is an option that you can ask about as well, and you might find that it will save you money along with preventing you from having to make monthly payments as well.
Once you secure your financing, you can then sign your lease contract. Make sure that you check it carefully, just as you would if you were buying a car, to ensure that you are aware of everything that is listed in it, such as what your monthly payments are going to be and how many miles you are allowed to put on the car during your lease term without having to pay a penalty for going over. Once you sign the contract, pay all of your upfront fees and security deposit and secure your financing, you will be able to hit the road with your newly leased vehicle.
When You Should Consider Leasing a Car
These are a few signs that the leasing process might be a better option for you:
You don’t have a lot of upfront cash. – If you don’t have much cash to put down on a car, you might have trouble securing financing for a purchase. Since you are not required to put down a down payment to lease a car, this can be a better option if your bank account is running a little short.
You don’t want to pay out a lot each month. – Whether your income is fairly low or if you just don’t like the idea of making large monthly car payments, you might find that leasing is a better way to go if you want to be easy on your budget.
You like the idea of driving a different car every two to three years. – Some people like owning, caring for and driving the same car for years. Others like to switch it up as often as possible. If you fall into the latter camp, leasing is probably going to be better for you.