If you are recently out of a Miami bankruptcy and looking to get into a new car you might be asking, "Should I buy or lease?" We are here to discuss the pros and cons of leasing vs. buying a car after a Miami bankruptcy.
Before we get into which would be better for your situation there are a few things that need to be discussed. First, before walking into a Miami dealer and signing any papers you need to keep in mind the cost of ownership. This means insurance rates and repair costs. Second, set a budget and include these costs into it. Know exactly what you can afford each month, and then find the best Miami auto finance company for bankruptcy.
Pros of Leasing after Bankruptcy
The first major advantage that catches most people’s eye is that monthly payments are typically lower with a lease. This is especially helpful coming out of bankruptcy because you will be on a tighter budget. Basically it is easier to get into a nicer vehicle with cheap payments with a lease rather than with financing.
With a least you are only in the car for a limited amount of time and when your loan term is over you simply turn it back to the dealership. There is no hassle of negotiating price with a private buyer, or a dealership when it’s time to get a new car.
Pros of Buying after Bankruptcy
The biggest advantage you will have purchasing a car instead of leasing will be the fact that there is no mileage requirements. With a lease you are agreeing to only put a certain amount of miles on the car (usually 12,000/year). If you happen to go over your alloted miles, be ready to pay a substantial payment to the dealership upon turn-in. This could be a financial burden for a bankrupt individual.
Purchasing a vehicle in Miami usually comes with lower interest rates, which means you are paying more each month to the principal amount instead of the interest. Keep in mind, that if you have filed a Miami bankruptcy you will still experiences higher rates that before.
Bankruptcy Auto Financing
If you are thinking about getting into a new or used car and have bankruptcy on your credit here at Bankruptcy Auto Financing we can help. We are not the direct lender, but we have a network of Miami lenders that specialize in auto loans while in bankruptcy, and after. Apply online today to see if you are preapproved and we will send your information to a Miami lender in your area.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.