How can we help you with financing your next car? It can be confusing, but doesn't have to be. Your auto finance choices are broader than ever, with various terms, great rates and leasing options.

When you buy

You pay for the entire cost of a vehicle, regardless of how many miles you drive, or how long you keep it for. Monthly payments are calculated by dividing the total cost of the vehicle including the taxes into 60,72, or 84 monthly or bi-weekly payments plus interest charges. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit score. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale or trade value.

When you lease

You pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Leasing is a form of financing and is not the same as renting. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value. You may be charged a lease-end disposition fee.

Lease-versus-Buy Example

What does all this mean to you?

  • Let's break down some real world numbers so you can see the difference.
  • Let's use a 2016 Corolla LE for example. With a selling price of $20,140
  • Now to finance this vehicle over 72 months, with no money down brings your payments right around $346
  • Now if we decide to lease that exact same vehicle for a much shorter term like 48 months. Your payments go down to $285 a month.
  • When you compare your lease vs. Finance payments, it is obvious how much more you save with a leased vehicle. with the potential to own the vehicle at the end, or the option to get a brand new vehicle of your choice!