11-19-21

Benefits of Leasing Your New Car

It seems mind-boggling that the car and truck leasing industry is booming. Why is it that people are choosing to lease vehicles when they can buy them new or second-hand? The downside to leasing is that after paying months or years on a vehicle, you have nothing to show for it at the end. However, the more economically-minded are discovering that their sum value per dollar spent is actually far better when they lease rather than when they buy.

Starting With The Math

Let’s say that you want to buy a Nissan, and it costs you around $21,595. A deal for leasing for three years would come to around $9,071.16, which includes taxes, the initial amount, and so forth.

A generous depreciation rate would be 46%, though, in reality, it is often higher. Meaning that the resale value of the car by the end of that three years is $11,661.30, meaning that the car lost $9,933.70 from its original value.

Buying, and assuming you sell the car after three years, you spend $10,308.70. But, leasing for three years only costs $9,071.16. The question then comes down to simple math. Would you like a car for three years to cost you 9K or 10K?

Some may say that somebody could keep a car in good condition for ten years and get the best possible value, but they would be wrong. The only way to get better value for your money is if you buy a used car or second-hand car with around 20 thousand miles on the clock, and then keep that car for ten years. Only under those circumstances do you come out noticeably ahead in terms of value for money.

Lease Obligations Do Not Show as Debt

This is a massive feature for some people when it comes to getting a new car. Most people are in massive amounts of debt. It is the nature of the game. Over the last 20 years, it has become easier and easier to get credit for everything from a car loan to a new holiday, and people have been taking them. Promises of low monthly payments and no down payment have lulled people into debt. They don't want anything else on their credit report, so when they see that a lease term doesn't count as debt on their credit report, they choose a car lease rather than an auto loan.

Lease Payments Can Be Considered Business Expenses

This is a massive benefit for some people, especially since many people are self-employed and/or working from home. People are able the get a new vehicle with all of its warranty promises for fairly low lease payments, and then pass them off as business expenses.

Even if they do not get lower monthly payments for their leased car, it is easier to pass off a lease deal as a business expense than it is when they buy a new vehicle from a dealership. In most cases, people who buy a car have to split their usage amount 60/40 for home and business. Whereas auditors will more easily accept that your monthly lease payments are at least 90% business use cases. This is one of the biggest benefits of leasing for small business owners, freelancers, and self-employed people.

Are There Any Downsides or Cons of Leasing?

As for the cons of leasing, they are surprisingly similar to the downsides of buying. For example, wear and tear may be a problem, but it is just as much of a problem when you buy the car and want to sell it after a few years.

At the end of the lease, you may have nothing to show for your money, but if you sold your car right there, you would still have nothing to show because you are just recouping the massive amount you spent in the first place. The residual value of the vehicle goes down very quickly.

One could complain about the payments and interest rate issues that come with leasing, but the same is true if you struggle with your loan payments to pay for your car. The lease contract says that the lessee has a mileage limit, but you can set your mileage limit before you lease the vehicle. Plus, even if you had a new car, if you are doing a lot of miles, then that too is reflected in its resale value, so the numbers balance up in the end.

Some complain that they do not have the credit score for a leased vehicle, but the leasing companies are no more vindictive than a lender and loan term setter when you buy a car. In fact, financing options are often worse than car loan and car lease plans.

Buying the Leased Car At the End of the Term

Some people have a hard time saying goodbye. There is no real benefit to buying the car from the leasing company at the lease end, but it may save you the hassle of buying your next car or next vehicle. Though that is not the real reason why people buy their leased cars. In most cases, people who buy their leased cars are ones who have made memories in the car, who have come to rely on the car, and who do not want to give it up. In reality, being able to buy the leased car at the end of the term, for the Blue Book value of the vehicle, is a pretty good benefit. It may not offer fantastic value for money, but it is a handy perk nonetheless.

Some say that a leased car is not worth the purchase price because of the excess mileage and excessive wear that comes with leased cars, but that is not the case. They are mistaking the way people treat hired cars with the ways they treat leased cars. Car buyers are not doing donuts in the Walmart parking lot with their leased car. They may be doing such things with their hire car, especially if they paid for the damage insurance upfront. But, in most cases, car buying and car leasing people take care of their leased car, they stick to the number of miles they signed up for, and they take good care of their vehicles.

The Lesser-Known Benefits of Leasing

You can often pick your own down payment to make before you lease your vehicle. Similar to when you get a car loan, you can sometimes make part of the payment beforehand and then make lower monthly payments as time goes on. The only downside is that you cannot trade in your car for its trade-in value and use that as your down payment.

When you lease a car, you get all the accessibility features, you can pick your number of yearly miles, and you get all the modern safety features. One of the best reasons to either buy or lease new cars every four years is because of new safety features, and because car payment companies and car insurance companies will go a little easier on you. That is unless you are leasing luxury cars, in which case your car insurance will be pretty high.

When you lease and car, you don't have to worry about gap insurance, the purchase price, or even the monthly costs beyond the lease period payment agreement. There is often some pretty tasty lease offers on the table, and some manufacturers offer incentives for people to lease their cars rather than buy them.

hand holding car keys

Are Lease Payments Less Than Traditional Car Loan Payments?

In some cases, if you have a good credit rating, you can get a car loan or a regular loan for less than what it costs for a car lease. However, this does not change the value of money you are getting for your car. When you buy a car, you are losing out due to depreciation, and nothing changes in that regards even if you get a good loan deal.

If you have a bad credit rating or you are looking for a car financing deal, then the monthly payments and your overall payments are going to be far higher than your monthly lease payments. In fact, perhaps one of the underlying reasons why car leasing companies are doing so well is because of the massive monthly and huge interest costs that come with car financing terms. Under most circumstances, the cost of leasing is better than buying. Plus, in terms of value for money, you are often getting a better deal if you lease a vehicle rather than buy it.

 

If you are in the market for a new car, it is probably time to sell your old one. Whether you are looking to lease or buy a new car, selling your old car can help you finance the new one. At IMX Auto, we can give you a quote for your vehicle in 2 minutes or less, and help take away the burden of getting your old car off your hands. Visit our website to get a quote online or visit us in-store to get started!

 

Store Hours:

Monday-Saturday: 9:00am-7:30pm

Sunday: By Appointment Only

Address: 811 N Victory Blvd, Burbank, CA 91502

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11-17-21

Top 5 Most Reliable Pickup Trucks

Now, more than ever, people care about the reliability and dependability of the vehicle they are driving, especially when it comes to pickup trucks. Wanting a dependable truck may seem obvious, and most modern pickup trucks will not leave you stranded in the middle of nowhere after breaking down for seemingly no reason. So, with modern technology, why are people still so concerned with finding a reliable vehicle?

In this day and age, being reliable means not breaking down forever after 80,000 miles. It means being able to keep and use the truck after the initial period, and not having to fork out thousands upon thousands of dollars when major elements in the truck need replacing. Under these definitions and terms, here are five of the most reliable pickup trucks, along with a few comparisons with other pickup trucks that didn't make this list.

1. Nissan Frontier

The Nissan Frontier is available in a four-door crew cab or extended cab with five-foot and 6.1-foot box lengths. It is a 2.5L four-cylinder 152-hp engine, or you can opt for the more expensive 261-hp version with the 4.0L V6 engine that also has higher trims. This is one of the most reliable midsize pickup trucks on the market according to consumer reports. Even when bought as used trucks, they are midsized trucks with a half-ton of reliability.

The pickup truck has an estimated 6,710-lb towing capacity. As you know, the model year does make a difference in some cases, but anything post-2017 is pretty good. The four-liter version offers a little more than this, with the implied reasoning that you could do your towing a little faster.

This may not be the Nissan Titan, and may not have a V8 engine, but it does come with 18-inch aluminum-alloy wheels, it has a factory-applied spray-on bed liner. It has a 5.8-inch touchscreen display for navigation and a utility-track bed channel system.

You may ask how this is better than something like the Ford F-150. And, where it is true that this Nissan cannot take the sort of beatings and damage that the Ford F-150 can, the Nissan is reliable in a different way.

2. Ford Ranger

This pickup truck has three trim levels (XL, XLT, Lariat) and comes with a series of driver-assist features. It is a modern driver’s vehicle, suitable for town and city driving. It comes with a 270-hp turbocharged EcoBoost engine, which is a 2.3L four-cylinder engine that pulls 310 lb-ft of torque.

When properly equipped, the 2.3L can tow an estimated 7,500 lbs, and carry an estimated payload capacity of 1,860 lbs. As you would expect from its name, there is a 4X4 Off-Road package that comes with your typical all-wheel drive, an electronic-locking rear axle, crawl control, and terrain management system and configurations. The Ford Ranger has 16-inch silver steel wheels and a rearview monitor with hitch assist. The 4 x 4 models have black front tow hooks and they have a SYNC infotainment system with a 4.2-inch display.

How does the Ford Ranger compare to something like the Toyota Tundra? On the one hand, the Ford Ranger offers much less torque than the Toyota Tundra, and the Tundra is better at transporting people. The Ford, however, costs significantly less and does almost double the miles per gallon of the Toyota Tundra. 

After 80,000 miles of hard work, the Tundra is going to need major repairs, whereas the Ford will need fewer repairs, will still be in working order, and its major components will cost far less to replace. You are also less likely to run out of gas halfway through a job when you are using the Ford Ranger.

blue Ford ranger pickup truck

3. GMC Canyon

Built for highways and for slightly rougher terrain, this pickup truck comes with a two- and four-passenger extended cab option, as well as a five-seat crew cab. It is like a hybrid between a Jeep and a midsize truck, with all the redesign and treads one would want from a reliable pickup truck. The GMC Canyon has a 2.8L four-cylinder turbo-diesel engine, with SLE and higher trims, and is able to tow around 7,700 lbs. It comes with an optional EZ-Lift, along with a lower tailgate. Buy from a showroom, and you also get 18-inch aluminum wheels, four-way power-adjustable front seats, leather-appointed front buckets seats, and heated front seats.

How does this truck size up against a heavy-duty full-size pickup like the Dodge Ram 1500? Well, other than the GMC Canyon being less expensive than the Dodge Ram 1500, the Canyon has better fuel mileage and still has a lot of space considering its size. The Ram is the typical powertrain, which is great, but when it comes to reliability scores, it doesn't suggest you'll get a smooth ride. Plus, the GMC Canyon does a far better job of transmitting the horsepower of the engine to the wheels than the Ram does. In terms of how much money you will spend on repairs over the years, the GMC Canyon beats the Ram by quite a distance. Then again, if the cost of parts and repairs on the Dodge Ram 1500 were lower, then perhaps it would have fared better on this list.

4. Chevrolet Colorado

As a mid-sized truck, it is one of the best trucks and most compact trucks for nimbly running through busy cities and construction sites. You can pick between extended-cab and crew-cab body styles, and there is both a short and long bed length to choose from. It has a 2.8L turbocharged four-cylinder diesel engine that gives an average of 30 mpg gas mileage on a highway. In terms of fuel efficiency and fuel economy, this heavy-duty truck is surprisingly impressive. This pickup trick a 2.8L can tow around 7,700 lbs. If you buy from a showroom, you get the 17-inch metallic-painted cast-aluminum wheels, cruise control, and power-adjustable side view mirrors.

Compare this truck to something like the Toyota Tacoma, and you'll see the Tacoma has a 3.5-liter V6 engine that has 278 horsepower with 265 lb.-ft. of torque. The Tacoma is also lighter and has a higher towing capacity. So why rate the Chevrolet Colorado over the Toyota Tacoma, especially when you consider that the Tacoma has a better safety record and better resale value? The reason is that the Toyota Tacoma takes a lot of work and effort in order to maintain its value and keep it running smoothly. That is not to say that you can abuse the Chevrolet, it just means that if you are not taking 100% care of your Colorado, then the machine is not going to punish you for it. The Tacoma does beat out the Chevy Colorado in many areas, but in order to maintain its condition, the Tacoma needs the sort of care, attention, and time that many drivers cannot afford.

red Chevrolet Colorado pickup truck

5. Honda Ridgeline

Like many full-size pickup trucks, this truck has a standard dual-action tailgate swings around the back and the side for easier access to the lockable in-bed trunk. As a new truck, It has a 280-hp engine, which is a 3.5L V6 engine, it has great ride quality and reliability ratings. It has uni-body construction along with fully independent suspension, so you can be sure of a nicely balanced ride. Buy from a showroom, and you also get 18-inch alloy wheels, a heated steering wheel, a driver seat with two-position memory, a blind-spot information system, and a cross-traffic monitor.

So, how would the Honda Ridgeline compare to something like the Chevrolet Silverado? Well, the Silverado is more of a workhorse, being able to haul 1,933 pounds compared to the Ridgeline, which can handle around 1,487 pounds. 

The Honda has a lockable storage compartment in the bed, and the tailgate opens onto the side and on the back. Both trucks have a trailer hitch, and yet the Silverado tows 5,900 pounds whereas the Ridgeline tows around 5,000 pounds. But, as it has come to light, we have learned more and more about the transmission and engine problems that the Chevy Silverado has. People who use the vehicle often for work purposes are not getting very good value for their money when it comes to repairs. Whereas no such problems occur easily with the Honda Ridgeline, according to consumers. The Honda is pretty easy to maintain and would have probably done a lot better in this list if its fuel system lasted a few thousand miles more than it does.

If you are in the market for a new truck or want to upgrade your current vehicle, it may be time to sell your old car- and we want to buy it! We know that selling your car can be a time-consuming and stressful process. That's why, at IMX Auto, we will give you an accurate and honest quote for your vehicle in only 2 minutes or less. Get a quote online today or visit us in-store to get started!

Store Hours:
Monday-Saturday: 9:00am-7:30pm
Sunday: By Appointment Only

Phone: 818-724-5754

Address: 811 N Victory Blvd, Burbank, CA 91502

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imxauto, Author at IMX Auto Group

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