In the last few blogs we have look at the advantages of leasing with a credit union instead of directly with the car dealerships or with a leading agency. While there are many advantages to using a credit union to leasing your New Mazda Car near Cleveland, there are some things that a union will not be able to offer you. The credit unions now active in leasing are known to be tough competitors on leasing rates and in customer service. But they aren’t likely to beat automakers’ advertised lease specials. Automakers routinely subsidize these deals to move excess inventory or gain market share. Another rub is that leasing has yet to rebound at credit unions across the country. As a result, consumers may have to knock at the door of quite a few of these institutions to find a leasing program. In the end, some may not find one.
In the end, our best advice is to think before you lease. Look into the best options for your area and the type of car you are looking to lease. The truth of the matter is, long term, no matter who is providing it, auto leases are not the best option for most customers. Anyone who normally keeps a car for five or more years is probably not a good candidate for one, because of the higher interest rates attached to leasing. However, if you are a person who normally one keeps a car for two or three years, a lease may be an opportunity for your to save some money, and sometimes reduce risk.
No matter who provides them, auto leases aren’t the best option for most customers. Auto leases can certainly be a good alternative for business people who like to drive new vehicles and who may have to squire clients around town. Theoretically, with a lease you only pay the true cost of ownership over the two or three years you drive the car. So the consumer can end up paying as much as 25 to 40 percent less per month, but in return has to accept annual mileage restrictions, often 12,500 to 15,000 miles. And the lessee also has to pay steep per-mile penalties if the limit is exceeded. Another consideration is that a vehicle will normally be under warranty during the lease period. And leasing, its proponents like to say, saves lessees from the ultimate fate of virtually all conventional car owners: It keeps them out of the used car business at the end of their ownership cycle.
When you are going to lease a new car, there are many options for sources. You can lease directly with the Mazda Dealer near Drumwright, but you may find an alternative source will give you a better deal. Working with your personal bank is often a good idea. However, to get the very best deal, pursuing a credit union may be your best choice.
It is important to note that credit unions are nonprofit organization that have low costs for operations. The tend to offer their members very straightforward answers on interest rates and for other deals. This makes it easy for member to shop for the best deal. Leasing companies don’t like to quote interest rates. Credit union will always give you direct answers.
In addition to being very straight forward, credit unions offer flexible leasing terms. Usually, credit unions are willing to be creative. This means that they will tailor the lease duration and monthly payment to owner specific driving habits. For instance, some unions have developed car leasing programs that do not require down payments. They also permit customers to buy the vehicles at any time, or even walk away from a lease after paying for any wear and tear. Other unique terms may include the ability to make a very small down payment, or set your own mileage limit. If the driver commits to a low annual mileage in the lease, perhaps 8,500 miles instead of the more typical 12,500 miles, that would translate into a lower the monthly payment.
Credit unions are beneficial because they allow the customer to have as much control in the leasing process as the company. Instead of a leasing company just telling y what their terms are, you have the opportunity to go out and find the car and then come back and tell the credit union where your interest lies.
There are many different sources to get financing for a car loan. Most of the time buyers will just financing straight through the Mazda Dealership near Bristow, but that isn’t always the best option. In this blog series we are going to look at some other great options for getting your car financed.
First off, we want to talk about credit unions. Credit unions, long a good source for car loans, are starting to make a comeback in vehicle leasing, hoping their track records of friendly service and low rates will help them build up an extra line of business. That’s good news for consumers and business people. As these institutions tiptoe back into the market, they are providing customers with another option for financing a vehicle after months of tough going for borrowers and lenders alike.
Between 2002 and 2004, many credit unions abandoned leasing after being burned in cutthroat competition with banks, specialized leasing companies and the automakers’ own financial units. It didn’t help that the resale values of returned lease vehicles plummeted before and during the financial crisis of 2008. That robbed credit unions and other lease providers of the opportunity to recoup their full investment in a vehicle.
It has tended to be the larger credit unions that have stayed with leasing through the ups and downs of the economy, and they usually have leasing experts in-house or under contract.
But now leasing is piquing the interest of other credit unions and their service providers again. For example, New York-based CU Xpress Lease, which has developed a leasing system for credit unions, sees opportunities beyond its home turf and is expanding into New Jersey, Pennsylvania, Michigan, Florida and California.
Credit unions especially are looking at any source they can to get some excitement going, and leasing is slowly creeping back. For many credit unions, leasing is the line of business that could transform them into a full-service lender.