2012 Executive Auto Guide Volume 4
(page 2 of 8)
Finding the Right Answers to Your Questions
Experts Compare the Advantages of Buying and Leasing New Vehicles
There are many decisions involved when you decide to get a new car. Some drivers may be overwhelmed by the choices they have to make, but none is as important as deciding whether you should buy or lease the vehicle.
The financial decision is often the most confusing for customers because the terms and conditions—even the language and vocabulary that used in the contract—can be perplexing. Familiarizing oneself with the lingo of the car industry is a great start. You also might want to start brainstorming: What are your goals, needs and wants? What kind of lifestyle do you plan to have for the next couple of years? These types of variables can greatly influence the vehicle you select and the way you decide to spend your money. With the help of Hawaii Business magazine’s 2012 Executive Auto Guide, you’ll have the necessary resources and information to help you decide which option is the best.
Adapting to Your Lifestyle
Leasing is a great option for businessmen and women who need a vehicle that quickly adapts to their unpredictable lifestyle. On average, the terms for most leases last for about two to three years. If your life changes—you get married and have kids, or you change jobs—you can switch to another vehicle after your current lease ends. You don’t have to worry about having to sell your current car. You just sign a new lease.
If you’re the type of person who enjoys an exciting lifestyle filled with the latest technology, a lease will allow you to drive a brand new car every two to three years. You can get that new hybrid or electric vehicle that you’ve heard about without having to negotiate and trade in your car. When you get tired of it after a few years and the lease ends, you can choose to drive the newest and hottest vehicle in the industry.
Flexibility to Modify
Finding the ultimate vehicle that will complement your lifestyle may be a difficult task, but it is achievable. When you do find the vehicle that takes your breath away, you can forgo the leasing options and decide to purchase it. Buying a car from a dealership allows you the freedom and flexibility to customize your own vehicle. You can add that extra top-of-the-line entertainment and sound systems or purchase the ultimate sports package to be added to your car. The best part about purchasing a vehicle is that once the loan is paid off, the car is yours.
Deciding whether you should purchase or lease your next vehicle can be stressful, but there’s help. In this edition of Hawaii Business magazine’s 2012 Executive Auto Guide, you’ll find expert recommendations for all of your auto needs. We’ve asked professionals from Hawaii’s top dealerships for their advice about buying and leasing vehicles. They reveal some of the advantages, as well as the drawbacks, that accompany each choice. With this new knowledge, you’ll have a better idea about which option is best for you.
“If you prefer driving new and exciting vehicles, leasing is the best option,” says Porsche of Hawaii’s General Manager Dennis Rademacher. “For example, you can lease one of our cars for two or three years and then decide to drive a different model the following year. That’s the beauty of our lease program.”
Porsche of Hawaii, which is part of the Fletcher Jones family of fine dealerships, leases its luxury cars to many drivers in Hawaii. The Fletcher Jones automotive retail empire actually spans across five states and 15 dealerships. Some of the other Fletcher Jones dealerships in Hawaii include Jaguar Honolulu, Land Rover Honolulu and Mercedes-Benz of Honolulu. Rademacher, who serves as the general manager for all of these locations, says his team can help customers decide which option fits their needs by listening to them.
“Allowing our customers to talk about their wants, needs and financial situation helps us to see the bigger picture and determine the best decision,” says Rademacher, “but sometimes people are unsure about the options they have. When that happens, we inform them about the different possibilities that we can offer. It’s important to us that our customers are fully informed before making the right decision.”
On the other hand, some drivers may know exactly what they want.
“They’ll come into our showroom and their heart would be set on the latest Carrera model,” he says. “When customers only want to drive a particular type of car, buying might be the most suitable option for their situation because they’ll own the car once the loan is paid off.”
If a customer chooses to purchase a car, Porsche of Hawaii helps to provide a variety of financial options.
“We can help you find a loan, determine how much your monthly payments will be and the term of the loan. In other cases, if you want to trade in your current vehicle, we can also help you with that process,” he says. “Our goal is to help you find the perfect car and financing program, whether you decide to lease or buy your new car.”
One of the primary reasons why many customers decide to lease a new car from Jaguar Honolulu is the excitement of driving different luxurious vehicles. At the end of the lease, drivers have three options: they can 1) extend the lease, 2) buy the car or 3) start a new lease and drive a brand new Jaguar.
Another advantage of leasing a car from Jaguar Honolulu is that drivers only pay for the period of time that they lease the car. Monthly lease payments are also usually cheaper than a car loan’s monthly payment.
Savvy businessmen and women also lease new vehicles for business purposes. If you plan on driving your car for work-related purposes, you may be able to deduct the operational cost from your federal income taxes. Consult your tax professional for advice on issues that are specific to your business and circumstances.
Drivers who prefer to stick to one type of car would find the advantages of buying a new car highly attractive. As a buyer, you can take advantage of the special rebates, prices and low-interest financing specials at Jaguar Honolulu. These limited-time offers vary according to the vehicles in stock, and depends on the time of the year.
Overall, the buying process is much more simple. You aren’t locked into a binding contract and don’t have to negotiate a new lease. If you want to sell or trade your car, you’re free to do as you wish. You’re in the driver’s seat and have the power to call the shots.
Timing is often another factor in whether a customer chooses to buy or lease their next new vehicle.
“Last year, the government offered car buyers an irresistible tax deduction on vehicles that weighed more than 6,000 lbs.,” says Dr. David Yew, M.D. of Aesthetics Hawaii. “The timing of this offer definitely influenced my decision to purchase the Range Rover from Land Rover Honolulu.”
As the market fluctuates, buyers can take advantage of zero percent and no minimum down payments. A slow economy, for example, could also potentially influence car dealerships to offer the lowest prices possible.
“We try to adapt to the present situation of our economy to help provide our customers with flexible options,” says Land Rover Honolulu’s General Manager Dennis Rademacher. “We propose different possible financial options to help customers get the vehicle that they want. We make people’s dreams come true.”
But buying a new car may not be the right choice for everyone. Other drivers choose to lease their vehicle based on their current lifestyle, which may be influenced by their hobbies or line of work.
“If our customers have jobs or weekend hobbies that require towing boats or transporting heavy equipment, they may choose to lease a vehicle that meets their needs from Land Rover Honolulu,” he says. “Leasing a vehicle from us allows them the flexibility to pick another vehicle in a few years if their lifestyles change.”
No matter what the timing may be in your life or in Hawaii’s economy, Land Rover Honolulu is there to help you get the vehicle that you want.
Mercedes-Benz of Honolulu offers advantages for all of its customers whether they choose to buy or lease their next car.
Drivers who choose to buy their vehicle can look forward to owning it when the loan is paid in full. As a car owner, the equity in the vehicle is transferred over to you.
“Owners have the freedom to do what they want when they own their car,” says General Manager Dennis Rademacher. “They can repaint the car, modify it or even choose to sell it. If you lease the vehicle, you don’t have these options because you have to return the car after two to three years. As the car’s owner, you can also customize your new Mercedes-Benz to your own style and needs.”
Another benefit of buying a vehicle is that you can drive it as far and as often as you want because there are no mileage restrictions. Leases often enforce mileage limitations that restrict frequent travelers. Exceeding past the mileage limit can result in extra costs. But buying a car isn’t the perfect option for everyone. In fact, there are certain leasing benefits that car buyers don’t have.
“Leasing allows you to drive a car with lower monthly payments and less cash up front than the traditional loan,” says Rademacher. “It also allows you to enjoy ownership during the factory warranty. If anything goes wrong, it’s covered by the warranty.”
Drivers who choose to lease their vehicles don’t have to worry about selling or trading the car when they no longer want it.
“With a lease, you also don’t have to worry about a car’s depreciation,“ he says. “At the end of the lease, you can simply turn in the car and start fresh with any type of car you want. It’s as simple as that.”
Not sure whether you should buy or lease your next vehicle? At King Infiniti of Honolulu, customers are presented with the information they need in order to make the right decision.
“We feel it’s fair to present both options to our customers so they can make a well-rounded decision that they’ll be happy with,” says General Sales Manager Debbie Adams. “The decision isn’t solely based on financial reasons. Often times, other factors, such as a person’s lifestyle, may influence why a customer chooses to buy or lease a car.”
Without a doubt, one of the advantages of buying a brand new car is the manufacturer’s warranty that covers the vehicle for a certain period of time.
“If something goes wrong with the car,” says Adams, “the repairs are always covered. You don’t have to worry about the maintenance headaches the way you would if you bought a used car.”
Another advantage of buying a new car is the freedom to modify the vehicle.
“If you plan on modifying the car by repainting it, adding turbo chargers or installing after-market rims and tires, then leasing would not be the right option because you would have to return the car when the lease expires,” she says. “In this situation, buying would be the better option.”
But if you’re looking for lower monthly payments, Adams recommends customers to look into Infiniti’s leasing options.
“Generally, monthly lease payments are about 30 percent lower than a purchase loan for the same car, same term,” she says. “You only pay for the portion of the car that you actually use, which depends on the term of the lease that you signed.”
Younger generation drivers often start out wanting a two-seater car, but change their minds when they get married and start having children. The leasing option would help to accommodate these types of lifestyle events.
“Times change, people change, and leasing allows you to adapt faster to these changes,” says Adams. “Personally, I think leasing is a growing trend, especially given how fast the car industry is changing with the introduction of hybrids, electric cars and gas cars. Leasing allows you to adjust for the unpredictable future.”
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