Advantages and Disadantages of Independent Car Lease Companies El Dorado AR
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Fort Smith, AR
Advantages and Disadantages of Independent Car Lease Companies
First of all, let's make sure we understand that dealers don't finance car loans or leases.
When a customer agrees to buy or lease a car, the dealer must attempt to "place" or "assign" the loan or lease with a bank, finance company, or lease company. The finance company then pays the dealer for the car, and works out payment details with the customer.
Two Ways to Lease
When leasing, you have two possible methods by which you can source the financing of your lease. Choosing the right source can reduce your monthly payments and save you considerable money over the life of your lease.
First, you can finance through a dealer's "captive" finance source, which is usually the car maker's own financial company, such as Ford Motor Credit, General Motors Acceptance Corporation (GMAC), or American Honda Finance Corporation.
Some dealers use alternative sources such as a distributor-associated financial company, or major national banks such as Chase or Wells Fargo. Normally, a dealer will not offer you choices but will select the source that offers him the best deal — which is not always the best deal for you.
UPDATE: Chrysler and General Motors dealers no longer offer car leases through "captive" finance companies. Although many such dealers can offer leases through banks or credit unions, independent lease companies can get you the same or better deals. You find your car at a dealer, and the i...