July 25, 2021
Lease? Or buy? These are the options for Elyria drivers. It's always a tough question for 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 vehicle, maybe an initial down payment, monthly payments on the balance that pays down the loan principal, and the finance charge.
Elyria drivers who lease finance the portion of the cost of the vehicle 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 vehicle to your local Elyria area dealership.
So how do Elyria drivers decide?
First, how much do you have for a down payment? A lease usually requires a smaller down payment.
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 vehicle? Elyria drivers who keep their vehicles around for a while will pay less if they buy. But just two or three years? Then leasing is the way to go.
If your car might suffer a ding or two, like a work truck would, then buying's better. The 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 far do you drive in and around the Elyria area? Important to consider because leases have a mileage limit; if you go over, you pay a hefty charge per mile/kilometer when the lease is up. So high mileage Ohio drivers should definitely buy.
Will the car be used in your business? Check with your accountant, but both financing options have different tax benefits, depending on your circumstances.
Over the short term, leasing is much cheaper. Medium term, leasing and buying costs are about the same. Over the long haul, leasing always costs more.
Leases may sound a bit complicated, and the typical lease decision weighs more on the monthly payment rather than price. So sometimes Elyria leasers may pay on a higher purchase price than a buyer would.
Here is a tip: If the salesman asks if you'll be leasing or buying, say you're not sure yet. Make your best deal, then look at your financing options.
Here's another: With a buy or a lease, if you total the vehicle, you'll owe the full amount of the loan, or the balance of the lease payments. Usually, it's less than the vehicle's fair market value, and that's all your Ohio auto insurance company will pay. But ask your Elyria 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 vehicle manufacturer's recommended service and maintenance or face penalties. So see your local advisor at your Elyria auto repair shop or Tuffy Elyria (Cleveland St) on a regular basis, get the required work done and save the service records. It's well worth it.
Tuffy Elyria (Cleveland St)
165 Cleveland Street
Elyria, Ohio 44035
440-322-3713
https://www.tuffyclevelandst.com
June 29, 2025
"I never expected it could happen to me." Countless drivers have said that after they've had an emergency turn their lives upside down. So before that happens to you, let's thinking about planning ahead for an emergency with a few things you should keep in your vehicle. Road flares. If you've ev... More
June 23, 2025
We all know about winter tires. But did you know there is such a thing as summer tires? Most people have all-season tires on their vehicles. They work pretty well in a variety of weather conditions. But if you want better handling and performance, you might consider switching to summer tires. ... More
June 16, 2025
What a convenience power door locks are on a vehicle. The latest don't even require you to push the button on the key fob; all you have to do is have it with you. But sometimes there's a component of power door locks that can fail, especially when they are used several times each day. Those ar... More