Realtor: Buy vs Lease
A typical realtor makes well informed decisions when it comes to the vehicle they are going to drive.
In today’s economy, if car dealerships had it their way, everyone would be leasing their vehicles.
For starters, the shorter term life cycles of leases guarantee more transactions will happen, keeping dealer volume high. When a customer returns a vehicle on lease to the dealership, multiple transactions happen. In addition, customers enjoy the perks of a short term lease, such as a full manufacturer warranty, and customer loyalty is always the goal. This is the dealer’s best case scenario.
Do Your Homework
Any realtor looking for a new ride will want to map out goals ahead of time. Having a plan of what you want will help avoid the pitfalls of an unethical salesperson. If you are going to consider a lease, keep in mind that realtors drive more than almost any other profession. In fact, National Association of Realtors (NAR) estimates the average realtor driving in excess of 30,000 miles annually for business alone.
Dealerships often offer leasing as an attractive option due to a lower monthly payment, but this can be misleading. The monthly payments may be lower and tempting, but so is the annual mileage allotment. Exceeding this mileage allotment will result in extra payments, and possibly even a higher payment than the purchase option.
Let’s see which real estate agents should NOT lease:
Any agent who drives more than 17,000 miles per year. NAR estimates that its own agents average about 30,300 miles annually for business-related driving. If you do that much driving from open houses to showings, or if your lease is not set up correctly (cannot afford the payments of high mileage lease), don’t get talked into leasing a car. Since leasing companies charge between 15 – 30 cents per mile you drive over their standard limit of 10,000 miles annually, a 7,000 mile overage could end up costing as much as $2,100 at the end of the lease.
If you are not into changing cars every three years, and would like to buy one and drive it until you are ready for a change.
If pre-owned is an option. You can save several thousands of dollars on a one-year-old, low mileage pre-owned vehicle.
It’s practically impossible for buyers—who on average only buy three to five cars in a lifetime—to keep track of it all and be informed enough so no one takes advantage of them. There are many loopholes and facts to be aware of and so make sure you do your homework before going into the dealer.
Express Cash Flow provides commission advances for real estate agents and brokers. Check us out at www.ExpressCashFlow.com or call us at 844-818-2274.