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| Q:General Questions about Financing - What is the difference between a loan and a lease? |
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| A:When you obtain a loan, your down payment and monthly payment go toward the total purchase price. When the term of the loan is complete and the loan is paid in full, you own the vehicle. See question 2.... |
| Q:General Questions about Financing - What is the difference between a loan and a lease? |
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| A:A lease is similar to a balloon finance agreement where you pay interest on the entire purchase price of the vehicle but you are only paying a portion of the principal balance. At the end of the term of the lease you may return the vehicle, buy the vehicle, sell the vehicle or trade in the vehicle. |
| Q:General Questions about Financing - How do I choose between a loan or a lease? |
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| A:The key question to answer is how long you want to keep the vehicle. If you want to keep it six years or longer then financing will likely make more economic sense.
To make a more informed decision you should also do a finance vs. lease cost analysis as follows: |
| Q:General Questions about Financing - How do I choose between a loan or a lease? - Finance: |
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| A:Add the sum of your money down, sales tax, monthly payments X number of months financed and anticipated cost of maintenance and repairs for the term the vehicle will be out of warranty. |
| Q:General Questions about Financing - How do I choose between a loan or a lease? - Lease: |
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| A:Add the sum of your money down, sales tax on the money down, monthly payments X the number of months of the lease.
Now, compare the two figures. If the finance calculation is twice the sum of the lease calculation you will be able to drive two different vehicles on a lease for what it would cost you to own just one on a finance agreement. |
| Q:Understanding Rates, Co-Signers, and Down Payments - What rates do you offer? - Part 2 |
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| A:Luxury Motors works with several financing (or lending) institutions to bring you the most competitive rates and terms on vehicle financing. We offers flexible rates, terms, and payments so that you can obtain the loan or lease that fits your unique needs. Continued on next question... |
| Q:Understanding Rates, Co-Signers, and Down Payments - What rates do you offer? - Part 2 |
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| A:The rate in your individual financing package is influenced by a number of factors including your credit history, the term of your loan or lease, the amount financed, and the residual value of the vehicle you lease. Financing through our dealership lets you enjoy a quick, competitive, and straightforward way of getting your new vehicle. |
| Q:Understanding Rates, Co-Signers, and Down Payments - Do I need a co-signer? |
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| A:Not necessarily. If your application requires a co-signer, we will inform you during your application process. |
| Q:Understanding Rates, Co-Signers, and Down Payments - How do I make my down payment? |
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| A:You can use a money order, bank check or cashier's check (made out to our dealership), or cash. |
| Q:Understanding Rates, Co-Signers, and Down Payments - Can I finance taxes, registration, and other transaction expenses? |
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| A:Absolutely. |
| Q:Can I include the cost of other products, such as extended service contracts, credit insurance and accessories in the amount that I finance or lease? |
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| A:Yes, again. If you are interested in any of our protection plans and would like to include their costs in your finance option, just ask one of our finance representatives to arrange that for you. |
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