Luxury Car Financing Tips: Loans vs. Leases

If you’re looking into a luxury car lease, you may quickly come across some terms that could be a little confusing. This guide aims to help simplify things by defining the most important lease terms. Join the experts at the Lyon-Waugh Auto Group to learn more. Term The term refers to the length of the lease. You can generally get a lease between 12 and 60 months, but 36 months (three years) is the most common option. Money Factor This is the interest you will pay on the lease. It will be represented by a number like this: 0.0025. When you multiply that by 2,400, you will get a more understandable percentage. Cap Cost and Cap Cost Reduction The cap cost is the total amount of the lease. In addition to the price of the vehicle, it includes any other expenses, such as service plans or gap insurance (see below). The cap cost reduction is anything that lowers the cap costs, such as trading in a vehicle. Residual and Depreciation The leasing company will want to know what the value of your car will be when the lease expires, and this is the residual. Its loss in value is known as depreciation. Gap Insurance Gap insurance is something that will be included with your lease, and it benefits you as well as the dealership. If your car is stolen or totaled in an accident and you owe more money than it was worth, gap insurance will give you the funds needed to cover the difference. Need More Info About Leasing? Contact Lyon-Waugh Auto Group in Greater Boston, MA If you have questions about a luxury lease, get in touch with Lyon-Waugh Auto Group. If you’re looking for an Acura, BMW, Land Rover, or MINI lease near Boston, a Mercedes-Benz lease in Burlington, or an Audi lease in Nashua, NH, our team is here for you. Contact us today!

If you have ever made a big purchase — especially if it was for something you paid off over time — your credit score almost certainly played a role. This is because lenders use this as a barometer to gauge risk. If you are planning to buy a luxury car and your credit score needs improvement, there are several ways to raise it. This luxury car finance guide offers some tips to help you purchase a new BMW, Mercedes-Benz, or other top-tier vehicle in the Greater Boston area. Pay Off Your Debt Perhaps the best way to boost your credit score is to pay off debt. If you can’t do it completely, start with the smallest debt, and focus on your credit cards. You may also want to look into consolidating your debt to limit the number of payments you need to make. Fix Credit Errors Many people have low credit scores in part because of errors that they don’t even know about. This is why it pays to get ahold of your credit report and read it thoroughly. If there are any errors or discrepancies, be sure to get in touch with somebody who can help. Use a Co-Signer If you can’t wait to buy a car, having someone co-sign on the loan could be a smart move. As long as this person has a good credit score, this will improve your chances of getting a loan, as well as a good interest rate. And as long as you make your payments every month, this is another thing that will raise your credit score. Lyon-Waugh Auto Group Makes Luxury Car Financing Easy Once you’re ready to get the luxury financing process started, Lyon-Waugh Auto Group near Boston, MA, makes it simple. Just fill out an application online to get pre-approved to finance a new Acura, BMW, Land Rover, or MINI near Boston, a Mercedes-Benz in Burlington, or an Audi in Nashua, NH. Contact our trusted dealers today!

Once you decide it’s time to replace your old vehicle, while you could certainly buy another one, you may also want to think about leasing. If you’re not sure if you should buy or lease a luxury car, this guide will help you decide. Why Buy a Luxury Car? If you want to own your car, clearly buying is the best decision. This enables you to add customizations and drive unlimited miles. Ownership also gives you something of value, which allows you to build equity. And, when a car is yours, you can sell it or trade it at any time. The only downside of buying is that it can be pricey. Why Lease a Luxury Car? If you just can’t make up your mind about which vehicle to get, leasing is probably your best choice. You can try out one car for a while, turn it in, and try out something else. Many people decide to lease because it’s a cost-effective way to have a car. In addition to being less expensive than buying, you aren’t financially tied to a car for very long. Another positive aspect of leasing is that if at some point you decide that you want to own the vehicle, you will be able to start the financing process. The only negative with leasing is that you can’t add any customizations, and there will be a yearly mileage restriction. Make the Right Choice at Lyon-Waugh Auto Group If you’re not sure which option is right for you, Lyon-Waugh Auto Group can help you decide. Visit one of our dealerships located in Greater Boston or New Hampshire to learn more about buying or leasing. We’re here to help!