Why the Better Than a Lease Loan is a Smart Option

family at dealership with Better Than a Lease

Once you know the basics of buying vs. leasing, you’ll probably prefer one over the other. Maybe you like the feeling of ownership that a loan offers you. Or maybe you prefer a new car every couple years, in which case a lease is just the ticket.

However, there's is a third way that gives you the best of both options: Hanscom FCU's Better Than a Lease Loan. With this type of loan, you own the car, but you make lower payments than with a traditional loan. You also avoid some of the out-of-pocket expenses that come with a lease.

How do you avoid these higher costs? Because you own the car, you don’t pay a security deposit. During the loan, you pay only for the depreciation, or the amount of the vehicle’s value you use.

Once your term ends, you have a few choices.

  1. Return the vehicle, paying only for excess mileage and unrepaired damage or missing original equipment.
  2. Refinance the remaining balance into a traditional loan.
  3. Sell the vehicle on your own, pay off the remaining balance, and keep any profit.
  4. Trade in the vehicle and realize any equity you have built up.

Vehicle ownership does have risks. You will probably want to have GAP insurance in the event of a total loss of the vehicle before you finish the term. If there is more depreciation than predicted, you will have less equity to work with.

But the opportunity to drive a better make and model than you could otherwise afford, combined with the freedom to choose your option at the end of the term, make the Better Than a Lease Loan an attractive option for both buyers and leasers.



Download our free eGuide before you make an offer on your next car. You'll get the information you need to make the best purchasing decision. Get your eGuide here!

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Hanscom Federal Credit Union
Hanscom Federal Credit Union

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