Unity One CU informs: Is buying or leasing right for me?

shutterstock_256873072-web.jpgFREE WEBINAR: IS BUYING OR LEASING RIGHT FOR ME?

You probably have a good idea of the vehicle that you want to drive. Sometimes the hardest decision you have to make is which type of financing is right for you. Purchase or lease?

Join Unity One Credit Union and FairLease for a FREE webinar to destroy the most common myths of leasing and ultimately help you decide which financing option is the right choice for you. 

Date: Wednesday, April 20
Time: 1:00 p.m. CST

Register Now!

*The FairLease program is only available in Texas.

About Unity One Credit Union

Established in 1927, Unity One Credit Union is the oldest credit union in Texas. A member-driven and not-for-profit cooperative, Unity One CU served the employees and families of the BNSF Railway for 70 years. However, after transferring its corporate headquarters to Fort Worth in 1998, the credit union expanded its field of membership to include other non-railroad companies, organizations and individuals. 

Today, anyone who lives, works, worships or attends school in Fort Worth, Blue Mound, Saginaw, Haslet, Keller, Colleyville, Bedford, North Richland Hills, Southlake, St. Paul, MN and Kansas City, KS may apply for membership. Unity One CU has seven branches to serve over 30,000 members nationwide. For more information about Unity One Credit Union, visit www.unityone.org. Think outside the bank.™

Buying vs. leasing a car? A teen shares a her thoughts

No matter what age you are, deciding to get a new car can be tough. There are many aspects that have to go into place before you can make your final decision.
Buying vs. leasing
Just to name a few: 
  • What kind of car do you want - color, model, type, etc.?
  • Is it safe? 
  • And if you're a teenage girl, like me, is it pretty? 
  • But most importantly, will that "new" car fit your financial needs? 
That's when you ask yourself, should you buy a car or lease a car? Now, I'm an 18-year-old teenage girl with probably the knowledge of a rock when it comes to financing and cars, but I did my homework before I decided on what to do. I was given a budget, and with that, I was able to explore the world wide Web for my dream car. I compared models, colors, engines, everything you could possibly do with what information the Web site would give you on a specific car. I remember even comparing cup holders!

"This car might be better; it has eight cup holders while the other has only four!"

I would calculate how much the payment would be monthly and annually.

When I was at the dealership with my father doing some paperwork for the car, it felt like I was on foreign land. Mind you, my father didn't speak very much English; so, I was the one talking and translating. They asked me if I was leasing or buying the car. Of course I wanted to buy it (I'm keeping my baby forever)! The process was long and hard, especially for someone without knowledge like me.

I chose buying the car instead of leasing it because my mother always told me that you'd be at a disadvantage if you ever lease the car. It loses its value, and you don't get to keep the car! I don't know if that's really true or not, but she's my mother. She has to know what she's talking about, right? 
 
I guess the moral of my story is that if you make your payments, in 10 years, you may still have "Old Reliable" to call your own. Buying a car would be the best option in the long run (in my opinion). :)
 
Kelly Ly is a senior at Haltom High School. She sports a brand new sedan that  she takes very good care of (her parents hope).

Should you buy or lease a car?

There was a time when buying a car was almost always the way to go, especially in the long run. The problem with leasing a car is that you have to take the entire depreciation hit of the vehicle over the term of the lease, but you get none of the resale value of the car once you turn it back in.

Lease contracts have become more favorable for the consumer in recent years, and there are instances where leasing can make sense. The key is understanding the advantages and disadvantages of leasing a vehicle versus purchasing it outright.Buying vs. leasing

Why Buy a Car Outright?

• No mileage charges to worry about. Drive all you want!

• No worries if the kids spill Kool-Aid on the back seat.

• Your payments come to an end, eventually – but you can still keep the car.

By keeping an eye out for deals and selling once in a while, you may be able to drive nearly cost-free (but you still have to pay costs associated with repairs, fuel and upkeep). (If you do it too often, though, the IRS may classify you as a dealer.)

• Factory warrantees are getting bigger, better and longer. In the past, ongoing service was one of leasing’s primary advantages; but now that you can purchase cars with substantial warrantees for as long as seven years, that’s less of a factor.

Advantages of Leasing a Car

• You often have a lower monthly payment.

• Because your payment is lower, you can use that money productively. You can invest it, for example, or redirect that money to pay down high-interest credit card debt. If your credit card rates are high, and you have a lot of debt to pay off, this can be a good option. Just remember, though, if you lose your job, your car won’t be far behind.

• Leasing for business can help to maximize cash flow. Cash flow is the lifeblood of businesses. You can have all the paper profits in the world; but without operating cash flow, you’re stuck. Leasing, rather than purchasing a vehicle can preserve this precious resource for you small business owners and entrepreneurs.

• Use your car for work? You can deduct your entire lease payment as a business expense. If you buy, rather than lease, you have to spread your deduction out over a number of years, under MACRS rules. This isn’t as big a selling point as some car salespeople think it is, though because you can also get a substantial first year deduction by purchasing a vehicle under Section 179 of the U.S. Tax Code. Talk to your tax advisor for more details on how this might apply in your specific situation.

If you drive a car a lot for business, you can deduct mileage instead of your lease expenses. Currently, you can deduct .58 per mile for business miles driven – even if you’re an employee, provided your boss doesn’t reimburse you.  If you drive a lot, this is a much bigger deduction than taking the lease payment deduction.

Don’t Forget Insurance

If you wreck a car you lease rather than one you own, your reimbursement may be less than what you owe on the lease. You may want to get “gap” coverage to cover the difference. The price of “gap” coverage could wipe out a chunk of the monthly price advantage of leasing rather than buying, so bear this in mind.

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