NASHVILLE, Tenn., Dec. 11 /PRNewswire/ -- Deciding whether to buy or lease
a new car is not an easy decision for most people.
Like many, Andrew Campanella is one new car buyer trying to sort through
the pros and cons of this often puzzling question.
"I've been thinking a lot about the benefits of buying versus leasing my
next car," said Campanella.
Campanella, 21, of Arlington, Va., is a senior at American University but
also works full-time for a media relations firm. The new car, which he plans
to buy after the New Year, is a reward for putting himself through school.
"I first went to the Internet and found KBB.com where I started to gather
all the information I could on the subject," Campanella said. "When I saw the
new link to the ACVL Finance vs. Lease Quiz, I thought: that's just what I
need."
What Campanella found in taking the quiz was that there were definite
benefits to leasing that he never considered.
"Unlike other online tools," he said, "the ACVL quiz fully explained its
recommendations. I'm leaning towards leasing now rather than buying based on
what I've learned."
The Association of Consumer Vehicle Lessors and Kelley Blue Book
(http://www.KBB.com) are now offering this new "Leasing vs. Buying Quiz" for all
consumers coming to Kelley's KBB.com website for automotive information and
advice.
The site is the number one automotive Internet gathering place with more
than four million unique visitors a month and 20 million site hits a day.
The "Leasing vs. Buying Quiz" prepared by the Association of Consumer
Vehicle Lessors (http://www.acvl.com) assists consumers with their decision on
whether leasing or buying is right for them.
"To make an informed decision whether to lease or buy, the consumer needs
to take into consideration what's going to happen at the beginning, during and
at the end of the lease," said ACVL President Jesse Bragg. "Our quiz is
intended to help the consumer take all the factors important to that
individual into consideration before signing any agreement on a new vehicle,"
Bragg added.
"We think the Leasing vs. Buying Quiz will be a great source of
information for consumers making this decision," said Charlie Vogelheim,
Editor of Kelley Blue Book. "Having the Quiz accessible from the 'advice'
page of our KBB.com website will give millions of consumers the opportunity to
make a more informed decision on buying vs. leasing. We recognize ACVL as the
experts in the leasing field and applaud the great job they've done with all
the leasing information they've put into their ACVL.com lease site. It's
definitely the best on the Web," Vogelheim added.
There are four main issues consumers should consider regarding their trade
cycle when deciding whether to lease or buy, according to Bernard de Souza,
chairman of the ACVL Customer Satisfaction Committee that developed the quiz.
* The vehicle return/walkaway option applies only if you complete the
lease term you choose -- be realistic and select a lease term you expect
to complete.
* You can avoid the hassles of negotiating a trade-in value only if you
complete the lease term -- shorter lease term increases the likelihood
that you'll do so.
* Sales tax in most states is only paid on the lease payments rather than
the full price of the vehicle. The shorter the lease term, the more
sales tax you save compared with purchasing the vehicle.
* If you want to keep your car more than six years, then leasing the car
will probably mean you will have to buy the car at the end of the lease
because the maximum lease term generally available is less than 66
months. In that case, you may have to pay a down payment and get
financing at a higher interest rate than if you had financed the vehicle
originally.
The first three items make it beneficial to lease if you choose a lease
term of two to four years.
Although five-year lease terms are available for consumers, many people
decide to trade prior to completing their lease term on five-year leases so
items one and two may not benefit them. Also, the sales tax savings is
reduced.
For trade-in cycles longer than five years, refinancing issues tend to
make financing a better option, although it is just one of a number of factors
to consider.
Consumers can take the ACVL "Lease vs. Buy Quiz" by visiting the Kelly
Blue Book web site (select the advice page and then the Lease vs. Buy Quiz) at
KBB.com, or by visiting the ACVL site directly (ACVL.com).
About ACVL
The ACVL, founded in 1993, is an association of the nation's largest
vehicle lessors. Based in Nashville, Tennessee, the ACVL is a national trade
association for the largest manufacturer and import distributor captive
finance companies, banks and independent leasing companies. Its primary goals
include increasing consumer understanding of lease benefits and
responsibilities through improved disclosure. Further information about the
ACVL and consumer vehicle leasing may be found on the Association's web site:
ACVL.com. The association has been very active in many areas of consumer lease
education. The ACVL has contributed significantly to the Federal Reserve
Board web site on lease education (bog.frb.fed.us/pubs/leasing) and has often
been asked to comment on both federal and state legislation designed to
improve consumer disclosures on leases.
About Kelley Blue Book
Based in Irvine, California, Kelley Blue Book (http://www.kbb.com) is the most
trusted automotive resource for consumers and the industry. It currently is
celebrating its 75th anniversary. KBB.com attracts over 4 million unique
visitors to its site and issues nearly 30 million pricing reports each month.
J.D. Power and Associates has named KBB.com the number one automotive web
site.
SOURCE Association of Consumer Vehicle Lessors
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Related links:
http://www.ACVL.com
Related links:
http://www.bog.frb.fed.us/pubs/leasing
Related links:
www.KBB.com
CONTACT:
Jesse Bragg, President of ACVL,
+1-615-467-1900, or Bernard de Souza, Customer Satisfaction
Chairman of ACVL, +1-615-467-1900, or Charlie Vogelheim, Editor
of Kelley Blue Book, +1-949-770-7704
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