What are some advantages of a car loan?
As you make your monthly loan payments, you can gradually own a share of your car. You can use that cash value later to help buy your next car in New City or Pearl River, NY. Keep making payments and you can eventually own that car. A lease usually can't do either of those two things. By making your monthly payments on time, you're improving your credit and gradually raising your credit score, so it's easier to get financing in the future.Â
What are some downsides to a loan?
A car loan usually requires 20% of the price of the car as a down payment, or at least 10%. The higher your down payment, the lower your interest rate. Some people don't have that much cash upfront. By contrast, a lease requires less "money due at signing," which is basically a down payment. A car loan also requires a larger monthly payment and some people don't have enough monthly cash flow to afford that as easily.
What are some advantages of a lease?
The #1 advantage of a lease for most people is that the monthly payments are usually lower than monthly car loan payments. So if your monthly cash flow is tight, a lease can help. Another lease benefit is that you don't have to sell your car at the end of your lease - usually after 36 months. You can just drop off your leased vehicle at Audi Nyack, pay for any lease-end damages or mileage fees, lease another car and drive home in a brand-new vehicle.
What are some downsides to a lease?
Except in rare circumstances, you aren't building any cash value in a car when you lease it. A lease is like renting in that sense. If you lease cars all your life, you won't own any of them. In addition, a lease has an annual limit on the number of miles you can drive. Go over the limit as you drive around Westwood or Congers NY and you pay excess mileage fees. You also pay for damage or wear-and-tear that are considered "excess" at lease-end.
Can you use either a loan or a lease to finance a new or used car?
Yes, a loan or a lease can be used for most cars at Audi Nyack. Fill out our simple financing application to see how much you can qualify for. Then browse our new Audi models or our used inventory to find a car that fits your preferences and your budget. We look forward to helping you find and finance the right car soon at Audi Nyack in Nyack, NY.