Car Loan News / The Differences

The Differences
Using This Comparison:This "leasing versus buying" comparison is an educational tool to make general comparisons of these two methods of obtaining a vehicle. It is not an advertisement for and does not describe a particular lease or loan. It does not include all of the terms of a lease or a loan. In many places, the identified costs do not include all fees and taxes. Please refer to the specifics of the lease and loan you are considering for the actual terms. To reduce the complexity of the comparisons, the advantages and disadvantages of purchasing a vehicle for cash are not included. However, most statements applicable to financing a vehicle also apply to purchasing it with cash.

Because of the close working relationship between the Federal Reserve Board (FRB) and the Association of Consumer Vehicle Lessors (ACVL) there are many similarities between the buying versus leasing information found on each group's web site. We have been very privileged as an Association to have worked so closely with the FRB to help assure the completeness and accuracy of the FRB information.

Table of Contents:
Monthly Payments
Vehicle Return
Future Value
Up-Front Costs
Total Costs
Frequency of Changing Vehicles
Gap Coverage
Warranty Expiration
Ownership
Mileage
Moving Out of State
Rate Disclosure
End-of-Term/Disposition
Excess Wear
Lease vs. Finance Models

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How to Test Drive a Navigation System
Inexpensive portable navigation systems and even cheaper smartphone nav applications are making the pricey in-dash systems offered by automakers less attractive to many consumers. But some people prefer in-dash systems because of their larger screens and because they offer more features. Plus, you never have to worry about forgetting an in-dash system at home. Finally, prices for in-dash systems are starting to drop.
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Bluetooth is a wireless technology that allows two compatible devices to communicate. In the car, it lets you operate a mobile phone "hands-free," meaning you don't have to hold the device while making or taking a call or performing such functions as accessing the phone's address book. (Of course, you have to use your hands to operate certain Bluetooth features via the vehicle's controls.)
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Automotive sound systems are more complex now that portable media players, hard-disk drives and smartphones are along for the ride. But the basic radio/speaker setup hasn't drastically changed, even though more speakers and more amplifier power have been added over the years.
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Responsible consumers tend to have all their affairs in order – a steady income, plenty of savings and perhaps even an investment or two on the side. While these things are all positive, they ultimately won't get you approved for an auto loan – for that, you need credit.
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