Want to be a smart customer? Before you begin the car-buying process, we highly recommend spending some time with Understanding Vehicle Financing. This pamphlet from NADA, the National Automobile Dealers Association, helps you evaluate your financial situation before financing or leasing a new or pre-owned vehicle. See our Finance Tips section below fo rmore information.
As you consider your purchase, here are some terms you might encounter when discussing finance packages with your Sewell business manager:
This financing option combines the benefits of leasing and owning. You pay only the anticipated depreciation of the vehicle, plus any finance charges and taxes. A couple of different options are available, depending on the mileage you expect to drive. Your Sewell business manager will help you arrange financing for a 24-, 36- or 48-month term. At the end of the term, you can either make a final balloon payment to buy the car outright or turn in the vehicle to the dealership.
A lease can be a good way to have a more affordable payment than when buying a car. Your lease payment covers only the vehicle depreciated value (plus the lessor's monthly finance charges), not the entire purchase value. Most vehicles are leased for 24 to 48 months, then returned to the lease company. We don't recommend leasing a vehicle for longer than its general warranty. For people who drive an average number of miles and take good care of their vehicles, leasing is a good financing alternative. Note: If the vehicle incurs excessive wear and tear or mileage during the lease period, a fee will be assessed when the vehicle is turned in.
Traditional financing is an installment transaction over a period of time. You agree to pay the amount financed, plus an agreed-upon finance charge. Traditional financing is probably right for you if you like the idea of owning a vehicle or you plan to keep the car for more than a few years. Sewell works with many different lenders to offer you competitive rates.
Finance or lease - what's right for me?
Either could be advantageous, depending on incentives offered by vehicle manufacturers, interest rates in the market and even the time of year you're shopping for a vehicle. Leasing often results in a lower monthly payment because payments cover only the vehicle depreciation - the difference between the purchase price and its projected value at the end of the lease. If you drive an average number of miles and take good care of your vehicles, leasing may be a good option. Financing, on the other hand, may be a better option for you if you plan to keep the vehicle for more than a few years or if you simply prefer the idea of ownership. The easiest approach? After you pick out a car you like, simply ask your Sewell business manager to show you a comparison of current financing and lease deals.
Can I get a better deal through a third-party leasing company?
Not likely. You see, leasing companies are middlemen, not new car dealers. They have to buy the vehicle from a dealer before they can lease it to you. And in between, chances are they add some profit of their own on top of the price they paid to the dealer. Then they figure your lease based on their marked-up price. By leasing from Sewell, you leave out the middleman.
To add to your peace of mind and enjoyment of your vehicle, Sewell offers a number of à la carte financial products that typically can be rolled into the total cash price of your vehicle and included in your financing package. See the Education column to the left for more information on these packages.
Vehicle Service Agreements
A service agreement offers extensive coverage of mechanical, electrical and computer components after your basic factory warranty expires. This protects you against the rising cost of parts and labor. It also provides towing and substitute transportation as well as travel protection should something happen while you're away from home.
LoJack Vehicle Recovery System
This vehicle tracking and recovery system is used by police departments nationwide. Recovery of your vehicle is guaranteed within 24 hours, or you'll get a full refund of the purchase price of the LoJack system. Purchasing LoJack for your vehicle can even reduce your insurance premium, depending on your carrier.
Tire and Wheel Protection
This covers flat tire repairs when the damage is caused by road hazards, including curb damage. It also covers tire replacement because of puncture, bruise, impact break or other road hazard damage, as well as repair and replacement of a wheel damaged by road hazard. A nationwide network of 20,000 participating service centers is ready to help when you need it. Call 1-800-317-3576 and a tire technician will gladly help you locate a dealership in your area.
GAP (Guaranteed Auto Protection)
If your vehicle is ever declared a total loss, GAP guards you from an unexpected financial obligation by covering the difference between what the insurance company will pay and the balance due on your loan contract or lease agreement. It also provides deductible coverage if a deficiency balance exists at the time of the loss.
In the event of your death, Credit Life Insurance pays the covered balance on your loan contract or lease agreement. If you are disabled because of an injury or extended illness, Credit Disability Insurance covers your monthly loan or lease payment. Benefit payments are made regardless of other insurance coverage. No physical is required to qualify for credit insurance, and you are covered immediately upon approval of your application.