When the time comes to purchase or switch a car, many start to see themselves driving the car of their dreams. Some do it after thorough research, while others just feel it is the right time to drive the car they have always wanted and are ready to take the next step to own it.
To acquire a car, there are two financing alternatives. Many choose a conventional loan, where the principal value, the interest, and in many cases, the insurance policy are financed in monthly payments for up to 84 months. But have you heard about the financial leasing option? Many do not have enough information on the details of this alternative and wonder whether it is the most appropriate choice for their lifestyle. Below, you will find out whether leasing is the best option for you.
Contrary to conventional loans, when you lease a car, you can set aside up to 35% in residual value, depending on the car make and model. The residual value is a portion of the principal value whose payment is postponed until the end of the lease term. At the end of the financing term, you have the option of acquiring the vehicle, financing it, or paying the residual in full. You may also change your vehicle again, getting the most convenient financing alternative for the residual value. This results in a lower monthly payment to better fit your budget.
It is also important to consider that the insurance policy is not part of the lease, thus reducing your auto monthly payments even more. Additionally, if you have other cars with independent insurance policies, you may insure your car lease as part of the master policy you already have.
While a conventional loan incurs daily interest charges for 15 days after your payment is due, a lease incurs no fees during this period. However, you will need to pay a fee for every payment that is late for more than 15 days.
If you want to switch your car frequently, it is more convenient to do it with a lease. Every year, new and more advanced models are released to satisfy customers. Besides, continuing to drive new cars helps reduce your mechanic workshop expenses, which are inevitable over time. If you lease a car and wish to make an upgrade, you can do it without incurring penalties. If there is a residual after this term, we help you find the appropriate financing option to handle it. The above is subject to credit approval.
Your relationship with your leasing executive does not end after the loan is closed. When you lease a car, you have an executive on call and willing to help you with issues related to your vehicle tag renewal and insurance policy procedures. Besides, the leasing executive will be available to help you get the best deal with the dealership when upgrading to a new car.
Find out if leasing is the best option for you. At FirstBank, we can help. Just call
787-725-2511 or visit us to get started. Call us and "Sal Monta'o" today.*
a maximum residual value of 35%. Does
not apply to all makes and/or models.
At least ten (10) business days must have elapsed since the settlement. If the settlement was made in cash, by official check, or money order, you may apply immediately.
You may request the Certificate of Title at the Auto Customer Service Center, open Monday to Friday, from 8:00 a.m. to 5:00 p.m., or through our First Line Customer Center, at
1-866-690-2511, available 24/7.
You must specify whether you wish to receive the title by mail or pick it up at the Auto Customer Service Center or the Auto Center in Mayagüez (located at Vista Verde Shopping Center). The title will be processed as requested by the customer, within no more than five (5) business days after the request is submitted.
For in-person pickups, customers must come in and show a photo ID. Alternatively, the designated person must bring a written authorization signed by the customer, including a copy of the customer's ID and the designated person's ID.
Service provided at no extra cost.
At least ten (10) business days must have elapsed since the settlement. Applicable service charges.
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Federal Law requires that all financial institutions obtain, verify, and keep records regarding the information that identifies all persons who open accounts. This means that when you open an account, we will ask for your name, address, date of birth and social security or tax identification number as well as other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. In all cases, protection of our customers’ identity and confidentiality of their information is our commitment.
The insurance products offered by FirstBank Insurance Agency, LLC are not a bank deposit. They are not insured by the FDIC, nor by any agency of the state or federal government. They are also not guaranteed by FirstBank or any of its subsidiaries and may decrease in value. Copyright © 2021 First BanCorp. All rights reserved.