|
Both are good.
Ask yourself : How long do you plan to keep the car? If you plan to keep it for only 2-3 years, then leasing is better. I've leased and purchased 12 cars so far and I know what I like.
If you want to lease the car, first, negotiate your very best price you can, THEN tell them you want to lease it. Try to get the highest residual buy-back price you can while putting down the minimum payment while at the same time, making sure that your monthly payments will be as low as possible or whatever you can afford.
Respect the terms of the lease. They may limit you to 20,000 miles a year or something like that. That is perfectly fine.
2 years later tell the dealer you want to end your lease. Assuming you have no serious damage to the car and that you are under the milage limit, ask them what they will pay you to end the lease. Yes, "What They Will Pay you". Under the terms of the lease they don't have to pay you anything, but if your car has less wear and tear than the contract allows, your car is worth more than the residual buy-back.
If they offer nothing, thats fine too. Ask them what it will cost to buy the car back. Take that number, and add 10 to 15% to it, and then put your car up FOR SALE at that new price. If it is spring time, add an extra 2-3% to it. You will EASILY Sell your car for MORE than you owe.
On the day of the sale, take your customer to the dealer to close the sale there. Your dealer will take care of the paperwork and properly and legally transfer ownership to the new car owner. If you are planning to lease a new car, you can take the profit from the sale and apply it towards the deposit on the new car and save taxes at the same time.
Leasing is good if you know how to take full advantage of the system and not get screwed.
Good luck!
|