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If you typically lease, or are thinking of doing so, make sure you check with the credit union first. We offer the DrivingSense™ program. It functions like a lease but without all of the hidden costs. Check out how DrivingSense™ matches up with a typical lease:
| Feature |
DrivingSense™ |
Typical Lease |
| Who owns the vehicle ................................................. |
You |
Dealer |
| Purchase price (1) ....................................................... |
You Negotiate |
Usually MSRP |
| Down payment required .............................................. |
No |
Sometimes |
| Security deposit ........................................................... |
No |
Yes |
| First & last month payment ......................................... |
No |
Yes |
| Mileage allowance ....................................................... |
12,000 - 18,000 |
(2) 12,000 - 15,000 |
| Excess mileage fee ...................................................... |
$.10 |
$.10 - $.27 |
| Options at end of loan: |
Sell ...................................... |
Yes |
No (3) |
| |
Trade .................................. |
Yes |
No (3) |
| |
Refinance ............................ |
Yes |
No (3) |
| |
Return ................................. |
Yes |
Yes |
| Return Fee ................................................................... |
No |
Usually |
| Excess wear and tear clause ....................................... |
No |
No (4) |
| Minimum personal auto insurance required ................. |
Your choice |
$300,000 |
| Can you terminate loan early ...................................... |
Yes (5) |
With penalty |
- Most leases are based on the manufacturer's suggested retail price (MSRP). With DrivingSense™ financing you negotiate a purchase price, just as you would with a conventional loan, which would normally be lower than MSRP. To overcome this, some dealers will “inflate” the residual value of the vehicle to lower your payment. This means, at loan maturity, the cost to “buy out” the lease will result in your paying an inflated price for the vehicle.
- 12,000, 15,000 or 18,000 mileage options are available. Lower mileage will reduce your monthly payment.
- Because you do not own the vehicle, you cannot exercise these options unless you first “buy” the vehicle from the dealer, paying sales tax again plus title, registration fees, etc.
- This clause, which is in all lease contracts, is what created the phrases “the hidden costs of leasing” or “the backend noise of leasing.” When you return the vehicle, the dealer will do an inspection and you will be charged for any “excess wear and tear.” This charge may cover both interior and exterior damage, such as upholstery stains, body dents and scrapes, and tire wear beyond the limits stated in the lease agreement. This is one of the ways dealers recover the cost of the inflated residual value amount. They expect the vehicle to be in “showroom” condition when it is returned, and of course it never is.
- Because you own the vehicle with DrivingSense™ financing, you can sell or trade it in on another vehicle at any time. With a lease you will be penalized if you attempt to terminate the lease early.
Is DrivingSense™ financing for everyone? No – but then again neither is conventional financing or leasing. However, DrivingSense™ financing is worth checking out before you lease or finance your loan elsewhere. Call or visit the credit union for more information or click here to go to the DrivingSense™ CarBuilder™ calculator to see for yourself how low your vehicle loan payment will be!
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