Leasing a car can be an attractive option. It affords you the opportunity to make lower payments on a better make and model car than you might otherwise be able to afford. The down side, however, is that leases have rules, lots of them.
From insurance requirements to prepayment penalties, there are costs to leasing that buyers don’t have.
Better Than a Lease Loan Benefits
What if you could get that low payment without a lease? With a Better Than a Lease loan from Hanscom Federal Credit Union, you can. Rather than leasing a vehicle owned by someone else, you buy the car and it’s titled in your name.
Monthly payments are typically 30% lower than a conventional loan with the same term. That’s because, like a lease, you only pay for the value of the car you use.
Unlike most leases, there’s no security deposit with a Better Than a Lease loan. You don’t need a down payment. And Better Than a Lease is for used cars up to 5 years old, too!
Mileage allowances are flexible, and per mile charges for going over your miles are modest. There’s no fee for normal wear and tear, and we guarantee to take back the vehicle at the stated value.
Because you own the vehicle, you have the flexibility to sell, trade, or refinance any time during your loan term. There are no prepayment penalties.
At the end of your loan term, you have four choices:
Return the vehicle and walk away. The balance will be paid off less any fees for excess mileage or damage.
Keep the car and refinance. Hanscom FCU rates are the same for new or used.
Trade the car in to a dealer and realize any equity you have built up.
Sell the car privately and pay off the balance. With a well-maintained vehicle and a popular make and model, you could make a profit.
If you are looking for a lower monthly payment, and the flexibility to trade in your car if you don’t want it any longer, the Better Than a Lease product might be perfect for you! Learn more at www.hfcu.org/lease.