What is Lease Here Pay Here and How is it Different from Buy Here Pay Here?
Lease here pay here is not a new concept. Yet, its popularity has not exploded like a buy here pay here in Spartanburg. In some respects, both the business models are similar while in others, they are dissimilar. To choose between the two and understand which one is right for you, you need to clearly understand the individual businesses and their involved benefits. So, let us explain what lease here pay here is, compare it with buy here pay here, and show you the facts as to which one is more beneficial.
What is lease here pay here?
When you lease a new vehicle, the financing comes from a typical lender like a bank. The lease amount, that you pay over 24 to 36 months, is the depreciation that the vehicle undergoes in that span. Initially, the finance company pays the depreciation value to the dealership so that the dealer can hand over the keys to you. And the sum is equally divided into monthly payments so that you can easily pay back the depreciation value to the finance company. The concept is similar to auto loans.
As obvious, your credit score matters in leasing a vehicle as well because the lender is ultimately lending you the depreciation value so that you do not have to pay the net sum upfront. And conventional lenders, as with auto loans, do not deal with bad credit score holders. Dealerships that lease thus set up their own financing wing to help people with bad credit scores to lease new cars. They do not focus on your credit score to approve your lease application.
How is it different than a buy here pay here?
Only the financing terms of a lease here pay here matches with buy here pay here used car lots in Spartanburg, SC. Apart from that, every other aspect is dissimilar. One, buy here pay here dealerships sell you used cars. That is, with their financing, you take ownership of the vehicle once the loan is paid off and retain the title. A lease here pay here only helps you with the lease. You will have to return the car once the lease term is over.
Two, lease here pay here dealerships usually deal with new cars. And new cars depreciate the most during the first 24 to 36 months. You thus bear the maximum cost of depreciation. A buy here pay here in Spartanburg sells used cars, vehicles that have already depreciated and lost a chunk of their cost. If you consider the bigger picture, a buy here pay here is always more cost-effective than lease here pay here.
Lastly, you can trade in your old vehicle in BHPH used car dealerships in Spartanburg, SC like Family Auto to manage your down payment and net auto loan, and take ownership of another vehicle. You can also trade-in in a lease here pay here but do not buy a vehicle or take ownership. Once the lease term ends, you are left without a car.
Choose a buy here pay here
In Family Auto, you get the best possible deals. And you get a comprehensive 2 years/36,000 miles warranty on or vehicles. A lease here pay here only makes the leasing process easy but the profound drawbacks of leasing a car remains. Buying a used car gives you better returns. Opt for buy here pay here financing and forget about recurring leasing costs.
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