Do you know all the pros and cons of each option?
There are several factors to consider when deciding to buy or lease a car, as both options have several benefits and downsides. For example, in addition to the monthly lease or loan payment, you need to consider how much you plan to drive, how often you’d like a new car, and if you plan to customize.
Benefits of buying a car
There are several advantages to owning a car, as opposed to leasing. Here are just a few of the most important ones:
- You own the asset — Assuming that you finance the car, it can take a few years to build up any serious equity (where you owe less than the car’s value), but eventually you’ll have an asset that can be sold or traded in if needed.
- No payments once your loan is repaid — When you buy a car, you’ll eventually pay off the loan and own the car free and clear, at which point you’ll no longer have a monthly car payment. When you lease, you’ll always have a car payment.
- No mileage restrictions — If you own your car, you can drive it as much as you’d like without having to worry about paying a penalty. On the other hand, if you lease, you’re generally limited to 10,000, 12,000, or 15,000 miles per year before you’ll start accumulating penalties.
- No charges for excessive wear — When you lease, you’ll generally be held responsible for anything that could be considered beyond “normal wear and tear.” If you get a dent in a car you own, for example, you can choose to fix it or simply live with the dent and save the money.
- Customization — A vehicle you own can be modified or customized as you see fit. Leased vehicles need to be returned in their original state, so any modifications will need to be removed, which is often impossible or very expensive.
Benefits of leasing a car
On the other hand, leasing has its advantages as well:
- A new car every two-to-four years — Simply put, if you enjoy having a new car, leasing could be the way to go.
- Little or no maintenance worries — For the most part, leased cars are under factory warranties throughout the term of the lease agreement. In my case, this is the primary motivating factor for leasing — I don’t like uncertainty, especially when it comes to potentially costly repairs. Leasing allows me to avoid this worry.
- Cheaper monthly payments — While it depends on the particular make and model, as well as factors such as your down payment, you can generally lease a car for less money per month than it would cost you to buy it. In full disclosure, I lease my car, and the difference between my lease payments and what the payment would have been on a 60-month car loan was about $150 per month. When you lease, you’re only paying for the vehicle’s expected depreciation and associated charges, not for the residual value of the vehicle.
Salesman, Tony Marcum, talks about 4 new features on the 2018 Chevrolet Equinox at the Monken Chevrolet Buick GMC dealership.
All new cars and trucks come with a factory warranty. Moreover, all new vehicles will generally come with a bumper-to-bumper warranty that lasts a minimum of 12 months or 12,000 miles. However, most manufacturers now offer bumper-to-bumper warranties that last for a minimum of three years or 36,000 miles—whichever comes first. Federal laws do make certain requirements that must be met for new car warranties regarding emissions systems and the warranties that cover them. According to federal law, vehicles must provide warranty coverage for the emission system for a period of five years or 50,000 miles.
Warranty information for your vehicle will generally be listed in a manual type book similar in appearance to your owner’s manual. While all warranty manuals may appear similar in appearance, the warranty information contained inside may vary considerably depending upon the manufacturer.
Basic New Car Warranty Information
With all new car warranties, most major systems and subsystems of a vehicle are covered for a specific period of time and provide warranty protection against malfunction or defect for most parts on a new car.
However, consumable parts, or parts that generally need to be replaced periodically, such as windshield wipers, fluids, belts, and accessories are generally not covered under any manufacturer’s new car warranty. So, you should check your owner’s manual for specific warranty information for your vehicle. In some cases, tires on your vehicle and car battery may be covered but, you should be aware that some manufacturers may not.
Also, different car manufacturers provide various levels of warranty coverage for accessories, like air-conditioning, sunroofs, premium sound systems and other options. Some manufacturers include them for coverage under the terms of the new warranty while some require you pay for replacement parts while the manufacturer pays for labor. Almost all new car warranties cover the drive train, or engine, driveline and transmission.
New Car Warranty and Emissions
When reviewing your new car warranty, you should pay particular attention to the emissions control section. This is the part that guarantees emissions performance for your vehicle.
An important note, because many states have minimum requirements for pollution control and carbon emissions released from your vehicle. If your vehicle fails to meet the standards of your state, you may be prevented from driving on state roads and highways. Also, repairing a damaged or defective emission control system can turn out to be very costly. So, you should always check to see if there is coverage. If you feel the warranty protection is inadequate, you might want to consider purchasing an extended warranty or mechanical breakdown policy to supplement your new car warranty.
Maintaining Your New Car Warranty
While all new cars and trucks come with a manufacturer’s warranty, you are required to perform certain steps in order to make sure your coverage remains in effect. For example, you will need to make sure you follow the manufacturer’s directions for having oil changes and routine maintenance performed.
If you fail to follow the manufacturer’s guidelines for changing your oil or performing routine maintenance, the car manufacturer will many times simply choose to void your warranty. Under the terms of your current warranty contract agreement, the manufacturer has the right to cancel your warranty if you do not reasonably take good care of your vehicle.
A 27 point inspection is a vehicle condition report. This inspection is used by our factory trained technicians and factory trained express team to monitor the customer’s vehicle. This report is used every time a customer comes in for a service or mechanical need. We will check wipers, lights, air filters, cabin filters, fluid levels, hoses, belts, shocks/struts, exhaust, fuel lines, and fluid leaks. We also test the battery that is available, measure your tires, and check the condition of the brakes when the tires are taken off.
The 2017 Jeep Compass will be delivered to Monken Dodge Chrysler Jeep in 2 weeks. Here is an article we recently read in USA Today by Mark Phelan, Detroit Free Press.
The new compact SUV’s upscale looks outclass similarly priced competitors, and its off-road ability would literally leave them in its tracks.
Priced from $22,090 including shipping and arriving in Jeep dealerships within a few weeks, the Compass seats five. On size, it fits between Jeep’s Renegade subcompact and midsize Cherokee SUVs.
The Compass has about the same size and power as compact SUVs such as the Ford Escape, Honda CR-V and Hyundai Tucson, but its off-road ability and upscale looks lift it above most of the competition.
The 2017 Compass is all-new, sharing almost nothing but its name with the previous Compass, a dreary model Jeep developed when DaimlerChrysler owned the brand. The old Compass and its sibling, the Patriot, went out of production late last year.
The new Compass looks a bit like a scaled-down version of the Grand Cherokee, Jeep’s most prestigious model. It’s rounder and more sophisticated than the squared off Renegade and Wrangler SUVs.
Two-tone paint adds an elegant black roof and pillars that combine with LED taillights, projector head lights, leather upholstery, soft interior materials, big touch screen and optional 19-inch wheels for a ritzy look and feel.
The seats are comfortable. Cargo and passenger space are good. The storage bin under the front seat’s center armrest is small.
The 180-horsepower, 2.4-liter 4-cylinder engine and 9-speed automatic transmission deliver plenty of power for everyday driving. The new Compass, in its front-drive, manual transmission version, is rated at 23 miles per gallon in the city, 32 mpg on the highway and 26 mpg combined. A 4-wheel-drive Compass with the 9-speed automatic scored 22 mpg city, 30 mpg highway and 25 mpg combined. It can tow up to 2,000 pounds.
The Compass is quiet on the highway and over rough paved surfaces, even with the top $30,090 Limited model’s optional 19-inch wheels.
I drove a 4-wheel-drive Compass Limited through sweeping interstate highways and among free-roaming livestock on twisty ranch roads. The SUV was surprisingly fluid through curves and dips. The brakes were easy to modulate, and the 9-speed transmission shifted quickly and smoothly. The steering was direct and responsive.
I took an offroad-ready Trailhawk with the same engine and greater off-road capability over a challenging course of hills, rock, sand, mud and water on a ranch a couple of hours drive from San Antonio.
The Compass forded fast streams swelled by thunderstorms. The most off-road capable model, the Trailhawk, has 8.5 inches of ground clearance and can make it through 19 inches of water. Its low gears allowed the Compass to negotiate steep hills, boulder-strewn arroyos and ruts that left one wheel suspended in the air. The chassis was devoid of creaks as it clambered over the obstacles.
The Compass’s short front and rear overhangs will serve it well as it navigates between trees and other obstacles on tight off-road trails.
No other compact SUV on the market, with the possible exception of the $41,800-up Land Rover Range Rover Evoque, could handle the course.
Few owners will use it, but that level of capability validates the new Compass’s credentials as a legitimate Jeep. Add value and upscale looks, and it’s easy to see why Fiat Chrysler expects the Compass to carry Jeep sales to new heights around the world.
Are you a female or a first time buyer that feels uncomfortable going into a car dealership to look at a vehicle? If so, here are 5 tips to help guide you into feeling more comfortable the next time you need to purchase a vehicle.
1. Research the models and prices online and know what is a competitive offer.
2. Check Car Fax or Autocheck to research a vehicle’s history.
3. Ask the dealer for the customer contact information that traded in the vehicle if you are looking for pre-owned.
4. Ask for service history and service work that was performed on the vehicle at the dealership.
5. Check guidebooks such as Kelley Blue Book or NADA for a fair purchase price on your trade in.
If you are considering Monken Automotive as a potential car dealer, we would like to inform you on a few ways we believe you will be more comfortable, including 14 female employees that are available to help you.
Walking into a showroom can be intimidating, therefore, we have 4 female employees in our Chrysler Nissan sales area. They are our Receptionist Desk, Office Manager, Internet Sales and General Manager. In our Chevrolet Buick GMC store, we have 5 female employees. They are our Reception Desk, Title Clerk, Office Manager, Accounting and our Owner. They are all available and willing to lead you in the right direction.
Driving into a service department can be just as intimidating. We have 5 female employees that work in our service departments and will help you with any questions about servicing your vehicle. At our Chrysler Nissan store Amy Monken-Brandt started as a service advisor 19 years ago and is now our Service Manager. Dorothy Cates has been in our service department for 5 years and Mel Jackson for 4 years. At our Chevrolet store, Amy Zalos is our Service Manager and has been with us for a year and we just hired Heather Hoffman.
Being able to talk to a female service advisor should encourage you to ask any questions without feeling lost or embarrassed. “We are not tech savvy, but we want to make sure your needs are met. We can ask the technicians their concern and put it into terminology that you will understand,” adds Service Manager, Amy Monken-Brandt.
Our waiting areas were created to make you feel as comfortable as possible. We have television, an Apple computer with internet access, vending machines, free popcorn and updated seating… all to make you feel at home.
Here is a review from one of our female customers.
Sara Presley Burnett reviewed Monken Dodge Chrysler Jeep Ram Nissan — 5 star
October 14 ·
“As a woman, I was expecting them to think I didn’t know what was going on and to try to take advantage of me. What I got was the complete opposite. I couldn’t have been more pleased with the way I was treated and respected. I have already recommended them to everyone I’ve talked to about my new car. Very happy and I will definitely be back for my next one.”
Blogger – Lance Marcum
Ordering a vehicle starts with our consensus cycle which takes into account our sales history and what we are predicting to sell. From there, the build cycle starts with our “allocations” on Thursday of every week. As far as knowing what works well for us, I look at our sales history and a program called “DART”, which lets me know what General Motors recommends that I build. We always try to keep a nice combination of colors and models available. Also, we can always build a vehicle specifically for a customer if they would like.
Once the order is submitted, it then goes into production. The process from the vehicle being built to on the lot is generally 4 to 8 weeks, depending on the vehicle. The ones being produced in Wentzville, MO are obviously here quicker than the ones that have to be shipped via railway.
The vehicles come to our lot via transport trucks.
When the vehicles arrive, sales consultants check to make sure there is no damage on the vehicle and then sign for approval. In the event that a vehicle has damage, it is noted and General Motors takes care of the repair. This is rare, but does happen from time to time. Once that is completed, the keys are tagged with a stock number and the vehicle goes into our service for a delivery inspection. The inspection consists of a full inspection in which we top off fluids. In essence, the dealership is doing their due diligence to confirm that General Motors has built the vehicle up to expectations.
Once that is completed, the vehicle goes to our detail department to get cleaned up and then pictures are taken for our website. The goal is that the vehicle goes through this entire process within 2 to 3 days of arrival so it is ready to sell.
What is CVT?
CVT stands for Continuously Variable Transmission. Quite simply it is a very efficient transmission design where it gets the most power to the wheels operating the engine at the most efficient RPM.
Nissan has lead the way with CVT transmission. Nissan started using them in 2002 and most of their product line has a CVT. Many manufacturers have followed Nissan’s lead and today have started using CVT transmissions in the pursuit of reaching the government mandatory mpg increases. The benefit of CVT is the fuel mileage increase, but an additional result is not feeling a “shift.” CVT’s do not have traditional gears like most automatic transmissions. A CVT has two cones that move in and out to create infinite gear ratios.
When I am giving a test drive, I often point out that on a traditional transmission you will see the RPM’s of the engine reach around 3,000 RPM (under light driving) prior to shifting down to about 1000 RPM’s prior to climbing again. On a CVT the RPM’s rise and lower slowly so there is not a traditional “shift” where a gear changes. Many automotive enthusiasts prefer the traditional transmission. I don’t understand the desire to feel a transmission shift as my belief is that the goal of any transmission should be to not feel it shift.
Why does Nissan use CVT in most of their vehicle?
Utilizing and becoming a leader in CVT has allowed Nissan to be a leader in fuel economy. Nissan came out with CVT on the 2002 Murano and within a few years all of their sedans. Today, most of their SUV’s and Crossovers utilize this technology. Believe it or not, the model T Ford transmission design had many similarities to a CVT.
Here is a video by Jason Fenske of Engineering Explained talking about vehicles with CVT.
Guest Blogger – Jan Monken
Monken Automotive and the Monken family have been involved with the Centralia Balloon Fest since its inception over 25 years ago.
The Balloon Fest, held every year in August, has become a huge event since the first one that was held at Kaskaskia College. Balloon Fest later moved to Foundation Park, east of Centralia, where it is still held today. The Balloon Fest offers entertainment for all ages with the balloon glow and balloon races as the biggest events. Originally, the balloons only glowed Saturday evening, but now following the Friday night balloon race, the pilots will come back into the park and glow around the pond.
We have always sponsored a balloon, and as sponsors for the Balloon Fest, we get the opportunity to crew at each event. Crewing a balloon can be hard work. We recruit family, friends and employees to be our crew members/chase team. Our crew members help set up the balloon for the race, chase the ballon, and help with the landing and packing it up. Glowing is also hard work as the crew members hold on to ropes to help keep the balloon from going up into the air.
Our first grandchildren to crew were Megan and Andrea, Kim( Monken) McMillan’s girls. I remember the first time they were old enough to fly with our pilot. The girls had so much fun the first time they rode in a hot air balloon, we could see their happy faces as they flew up over the fields and trees.
Then our grandchildren, Katie Hartmann, Jalyn and Addison Monken became part of the Monken Chase Team. They loved to get up at 5:00am to meet at the Bell Tower Inn for the pilot meeting. This is when the pilots are informed if the balloons will fly and where they will depart. The girls have all had the opportunity to fly up in a hot air balloon and loved every minute. This year, Megan and her family will be crewing. We are now starting the next generation to crew and fly!
In the past, Monken’s have also sponsored the pilot dinner. One year Monken Automotive hosted the Friday evening dinner for all pilots, crew members, and sponsors. Wearing his cowboy hat, Harold Monken, directed traffic on his horse. Some of the pilots remember that event well.
I also remember on one of the windiest evening while we were trying to hold onto the balloon during Balloon Glow, a large gust of wind came up. We yelled for help and here came the “cowboy,” Harold, to help. Well, Harold always thought ballooning was a piece of cake, but he found out real quick that it wasn’t as he was flipped on his back side real quick!
We have had the pleasure of having the balloonist, Bob Boswell, for many years. Bob was a paratrooper before he began ballooning. He has quit coming to our event, but he still has a balloon repair shop. Our next pilot Ken was a Fed Ex pilot, and flew balloons as a hobby.
For the past 4 years our pilot has been Jared Miller. Jared is a nurse anesthetist. We enjoy meeting and getting to know our pilots and their families.
Thanks to everyone that puts this event on every year. Happy ballooning to everyone!