Financing or Leasing – What Are Your Options to Get a Luxury Brand

Financing or Leasing – What Are Your Options to Get a Luxury Brand

Consumers looking for a luxury brand vehicle face a difficult dilemma – is leasing or buying a better option? This depends on many factors, including brand, price, income level, and others.

Leasing
If you plan to drive your brand new vehicle for just a couple of years, then leasing is probably a better option. Leases depreciate at a slower pace compared to vehicles owned by individuals. There are other benefits to leasing, one being that down payment may not be required. In other cases, you only put a small amount down. Another benefit is that you have a brand new, luxury car on your hands that you may otherwise be unable to afford to purchase. A further benefit is the fact that you get manufacturer’s warranty. There are some cons as well, one being that leasing is a more costly option than a vehicle loan. Another downside is the fact that the vehicle should be kept in good condition. Otherwise, you will be asked to pay higher wear-and-tear charges.

Financing a Luxury Brand Vehicle
Financing the purchase of a vehicle is another option to look into. Before you shop around for a loan, you may want to have a good look at your vehicle to check for damages, interior wear, dings, and dents. If there is a lot of wear and tear, financing is a better option than leasing.  There are no limitations, restrictions, or penalties for racking up mileage. The main benefit to buying a new vehicle, however, is the fact that it is yours once you pay down the balance. The larger the down payment, the less it takes to pay off a car loan. You can keep it or sell it since there is no fixed ownership period. Another benefit is that the insurance limits on your vehicle coverage are lower compared to leasing. A major drawback is that if you don’t have enough cash on your hands, then you have a monthly payment to make. The initial cost or down payment can be high as well, depending on the price of the vehicle.

Financing Options
There are several options to finance the purchase of a luxury brand vehicle, depending on your credit score and debt-to-income ratio. One is to apply with a major or local bank or credit union provided that you have stellar or at least decent credit. There are both secured and unsecured options. You may also discuss different financing options with your car dealership. Some manufacturers also offer attractive financial packages and add-ons. Another option is to look into bad credit car loans if you have subprime or less than perfect credit. In this case expect a higher interest rate, especially if you can’t afford to make a considerable down payment. Finally, you can use a low interest card with a large credit limit to cover the down payment and get a more favorable rate and terms.

Why is BMW One of the Top Automakers?

Why is BMW One of the Top Automakers?

BMW is a top automaker, along with giants such as Honda Motor, Volkswagen Group, and Ford Motor. Headquartered in Munich, the company manufactures vehicles and motorcycles and owns Rolls-Royce Motor Cars.

BMW at a Glance

A best-selling luxury vehicle manufacturer for 2013, BMW reported a 6-percent increase in sales volume to more than 1.9 million vehicles across brands. The German producer manufactured over 2.1 million vehicles and about 120,000 motorcycles in 2012. BMW is also part of Germany’s Big Three, along with Mercedes-Benz and Audi. The German automaker has subsidiaries in multiple locations, including South Africa, Mexico, Japan, India, China, Brazil, and others. It also ranks among the world’s top green companies based on factors such as environmental impact and corporate sustainability. In fact, BMW topped the list of eco vehicle manufacturers and has been ranked the world’s most environmentally-friendly company by Newsweek. With a green score of about 73 percent, the automaker is a clear winner thanks to its plug-in hybrid cars. BMW is already one of the top automakers and one of top luxury vehicle brands in the United States. The auto manufacturer sold over 339,000 vehicles in 2014 and increased its sales volume by close to 10 percent the previous year. By sales volume, BMW tops the list in the U.S., followed by giants such as Cadillac, Audi, Lexus, Mercedes-Benz, and Acura. There are some 100 Mini stores and 440 outlets in China alone while a new plant for BMW’s 5 and 3 Series began operations in India in the beginning of 2007. China is, in fact, the company’s second largest market after the United States.

BMW’s Competitive Advantage

In fact, the automaker has been named one of top-selling producers for 10 consecutive years. According to marketing chief Ian Robertson, BMW increased its sales volume in all strategic regions, and models such as the electric i3, 2-series Active Tourer, and x4 are in strong demand. As the worlds’ top luxury vehicle manufacturer, BMW outsold major brands such as Mercedes-Benz and Audi. Demand is strong in the U.S. and China, with sales in China climbing up by over 29 percent. While experts warn about slowing momentum, they share the opnion that BMW will be able to increase its market share and sales volume.