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Should You Lease or Buy a New Car?

Rent or BuyIf you are in the market for a new vehicle, you may be deciding on whether to buy or lease. There are advantages and disadvantages to each and there are plenty of differences between leasing and buying a car. In general, it makes sense to purchase a car, truck, or SUV if you drive a lot, have kids, and plan on keeping the vehicle for a longer period. If you drive roughly 10,000 miles or less per year and will keep a car in pretty good shape, you might want to consider a lease. Either way, here’s a look at buying a vehicle as opposed to leasing one.

Ownership

 When you purchase a vehicle, it is yours, and you can keep it as long as you want. If you finance your purchase, once the loan is paid you own the car free and clear. When leasing, you do not own the vehicle. You are loaning it for a period of time (determined by the lease). You may decide to buy it at the end of the lease.

Costs & Payments

 If you have the money, you can pay cash for a vehicle and typically get a great deal. You may also opt to use a large down payment and finance the rest. You will also pay taxes, registration, and title fees. If you choose to lease, you will pay those same taxes, registration, and title fees as well as a security deposit and the first month’s payment. A loan payment for a buyer will always be a little higher than that for a lease. The buyer is paying the entire purchase price of the vehicle. A lessee is only paying the vehicle’s depreciation during the term of the contract, plus interest.

Future Value

 On the plus side for a lessee is the fact that future value has no financial effect. A person on a lease does not generate any equity in the vehicle where a buyer does. A car owner who has paid in full or paid off a car loan can tap into that equity if ever needed. In other words, you can use the vehicle for a car title loan. These are short-term loans for a few hundred dollars or maybe a few thousand dollars that are taken out against the value of a car or truck. Embassy Loans has helped tens of thousands of customers use their vehicles to gain access to emergency cash. Someone who leases a vehicle does not have the opportunity to take out a car title loan.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.