Tag Archives: car lease

buying a new vehicle

Top 3 Things to Keep in Mind When Buying a Car

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Are you in the market to buy a new-to-you car? If so, be careful about jumping into things too soon! With auto loan interest rates soaring and car prices still high, you want to make a good investment. Fortunately, you don’t have to make your decisions in a high-pressure environment. Car salespeople expect customers to leave their lot with a purchased vehicle, but shopping at the dealership isn’t your only option. You can also shop online or through an online auction. 

Below are three important things to keep in mind when buying a vehicle. 

1. New vs Used Vehicles 

The first decision you’ll have to make is whether you want to buy a new or used vehicle. There are pros and cons to both sides, so take some time to consider what’s best for your personal situation. New cars give you access to the latest technology and safety features, but you’ll pay more. However, you can potentially take advantage of low interest rates – sometimes 0% APR. 

Used cars can save you some money, but you’ll also be getting an older car that might need some repairs or attention. And, you probably won’t get all the latest safety features and technology. The best way to get a newer car with modern features at a reasonable price is by shopping for certified pre-owned vehicles or shopping for repossessions on RepoFinder.com.

2. Leasing vs Buying

Another thing to think about is whether you want to lease a vehicle or buy a vehicle. If you purchase a car, you’ll likely take out a loan and have a fixed number of payments. Once the loan is paid off, the car is yours to keep. It’s a great option if you plan to keep your car for many years and don’t mind paying for maintenance and repairs. 

A lease is also a type of loan, though it only lasts for about three years. Once this time is up, you can either pay the balance and buy the vehicle, or trade it in for something new. You’ll be putting out money every few years to cover taxes and fees, but you don’t have to pay for maintenance and repairs. 

3. Negotiations 

Before you purchase a vehicle, do your research so that you can be an effective negotiator, if need be. Research the fair market value for the vehicle you’re interested in, including its make, model, year and mileage. Do the same for your current vehicle if you plan to trade it in. 

When negotiating, be careful not to give the salesperson too much information about your financial situation and what you’re willing to pay. Focus on the facts – not your emotions. If a car isn’t in your price range, you’ll have other options. And if you’re uncomfortable with negotiating, you can always shop online and look for the best prices. 

Find a New-to-You Car at RepoFinder

RepoFinder has a huge database of lenders who are selling their repossessed inventory. Many of the vehicles are in good condition and require just a bit of TLC. You can make your bids directly online and negotiate with the lenders. They are often willing to work with buyers because they want to recoup their losses and gain new clients through financing. Try us out today and see what cars are available in your area! 

leased car

Can a Leased Car Get Repossessed?

Approximately one out of four vehicles is leased each year. While this option isn’t for everyone, it can offer benefits such as lower monthly payments, lower maintenance costs and the option to get a new vehicle every few years. But what happens if the lessee stops paying on a leased vehicle? Can it get repossessed just like owned cars? 

The short answer: Yes. If a person is currently leasing a car and can’t afford the payments, it can be repossessed. Let’s explore more about repossessing leased cars. 

What Happens When the Lessee Stops Making Lease Payments?

When a person leases a vehicle, they’re making an agreement with the lessor (or the company they’re leasing the car from) to make their payments on time. If they don’t, it’s a breach of the lease, and it will trigger the lessor to send a tow truck to come and get the car. It doesn’t take much for this to happen. Usually, just a couple of missed payments can get the vehicle taken away. 

Now, when a lessor takes the car away, is this the same as repossession? Yes, it is. If the lessee doesn’t authorize the option of having their car repossessed, it’s referred to as an “involuntary repossession.” If they do volunteer or authorize having the car repossessed, it’s called a “voluntary repossession.” 

Either way, it’s not a happy situation because it can cost a lot in fees such as: 

  • Early termination fees
  • Remainder of lease payments 
  • Past-due payments 
  • Excess wear-and-tear and mileage fees
  • Cost of repossession 
  • Cost of resale 

Is it Common for Cars to be in Repossession? 

Repossessed vehicles are not uncommon, especially in this day and age where the average new car costs roughly $47,000. If you face any type of hardship, it’s going to be very difficult to make these payments on time. According to recent data, roughly 2.2 million vehicles were repossessed in 2021. 

What Happens When Cars are Repossessed? 

When a repossession happens, the owner typically has the opportunity to make up the payments and take back the vehicle. If they’re unable to do so, the lender will take possession and sell the car, usually through an auction. This is beneficial for the public community because they can purchase repo cars for a fraction of the price. 

However, many auctions are not public and require a dealer’s license. RepoFinder does not. We are the largest bank repo list in America, with links to thousands of lenders selling bank-owned vehicles. Browse our selection of repo vehicles today, including previously owned and leased cars in good condition! 

leasing a car

4 Biggest Disadvantages to Leasing a Car

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Leasing a car might sound like a good idea, especially when comparing prices. Generally speaking, a leased vehicle has lower monthly payments than a new vehicle. Plus, you don’t have to worry about most repairs because they’ll be covered by the manufacturer’s bumper-to-bumper warranty. And when it comes time for a new vehicle, you can trade your lease in – no selling required – and move onto your next car.

But leasing is not for everyone. Below are four major pitfalls of leasing a vehicle that you’ll want to be aware of. 

1. You’ll always have a car payment. 

Most lease contracts are between two and three years. This means that every couple of years, you’ll have to trade in your lease and look for a new vehicle. On top of that, you’ll have a car payment until you buy a vehicle and pay it off. 

While leased car payments are generally lower than financing a new car, you won’t save money over the long term because you’ll always be making payments. On the flip side, you can purchase a vehicle and get rid of the payments once you pay it off. 

2. It’s hard to get out of a lease.

Leasing contracts are difficult to get out of. You’re usually stuck with the vehicle until you pay off everything you owe or wait until the end of the term. Ending your lease early often results in early termination fees. 

If you buy your own vehicle, you can sell your car when you’re ready for something else. And you don’t have to pay any extra fees to the lender – all you have to do is pay off the loan amount from the sale. 

3. There are mileage limits.

Leased cars usually have annual mileage limits of 10,000, 12,000 or 15,000 miles. This helps leasing companies prevent unnecessary wear and tear on their vehicles. If you drive more than this in a year, leasing probably isn’t for you. Otherwise, you’ll be responsible for paying extra mileage fees.

When you buy a vehicle, you don’t have to worry about any mile restrictions. You can drive where you want, when you want. Having high mileage will affect your resale value, but you don’t have to pay any more for it while you own the vehicle. 

4. Fewer options for borrowers with poor credit. 

If you have poor credit, you may not be eligible to lease a car. However, you have more options if you want to finance a vehicle, especially when you choose a repossessed vehicle. Repo sellers like banks and credit unions are highly motivated and usually able to negotiate a deal. 

Additionally, because there are different lenders with varying credit types, you can find more options in terms of financing. While you can expect your payments to be higher than someone with good credit, you can at least get your payments to an affordable amount each month.

Shop for Repossessed Cars 

These are just some of the reasons why leasing is not for everyone. It’s important to be informed, as this will help you make the best decision for your next car purchase. RepoFinder has a huge database of repossessed cars, trucks, luxury vehicles, SUVs and more. Browse our selection today and see how affordable a new vehicle can be!