No Upfront Sales Tax
When you lease a car you don’t pay the sales tax on the full purchase price. You only pay sales tax on the down and the monthly payments. We are talking about nearly a nearly $700 savings on a $10,000 car. So instead of your down payment going to sales tax, you can use it to lower the payments or get a newer, nicer car. It’s a big deal and a great reason to chose to lease a car instead of buying it.
The longest term we do on our leases is three years. Our average term is around 2 1/2 years. Why are shorter terms better? Well, if you have less than perfect credit, you’ll pay a very high interest rate at our competitors. Like really high. 24.99% to over 30% interest! If you buy a car at that interest rate and make payments for 2 1/2 years, you’re going to owe a lot more than that car is worth. That means it will be very hard to trade out of that car. Negative equity really sucks. Shorter terms = more options. And you won’t be upside down.
Quicker Path to Ownership
Many customers are reluctant to lease because they say they’ll never own the vehicle. We have a ton of customers that finish their short term lease then decide to buy the car for the residual value. On average, you’ll own the car outright inside of 4 years whereas most conventional loans these days are around 6 years! You will pay off and own your car sooner by leasing at Markosian Auto.
Newer Cars/ Lower Payments
Because there is a residual at the end of the lease this means you’re only making payments on the portion of the car you’re going to use. This enables us to offer newer cars at lower payments. Just compare our inventory to the typical buy-here-pay-here type store. There is no comparison!
Markosian Auto chose leasing as a better way for our customers to get into cars they like. It’s a big reason why we keep on growing and selling more cars than our competitors.
Check out our article on trading your car early.