Buyer Education Hub: Your Guide to Leasing vs. Financing, Short-Term vs. Long-Term Agreements, CPOs vs. Used, and Franchise Dealerships vs. Independent Lot
Buyer Education Hub: Your Guide to Leasing vs. Financing, Short-Term vs. Long-Term Agreements, CPOs vs. Used, and Franchise Dealerships vs. Independent Lot
What Do Buyers Need to Know Before Purchasing a Car?
Buying a new or used car can be a stressful event, especially if it is your first time. With our buyer education hub, car shoppers from North Port to Parrish and Palmetto to Sarasota have access to the knowledge they need to confidently buy a new or used car from a dealership like BMW of Sarasota.
Continue exploring our buyer education hub to learn more about leasing, financing, agreements, pre owned vehicles, and dealerships.
What Information is in the BMW of Sarasota Buyer Education Hub?
The BMW of Sarasota buyer education hub includes information about the common questions we receive at our dealership in Sarasota, FL.
Drivers frequently ask about the differences between leasing and financing, and we share information like:
- Leasing is similar to a long term rental.
- Financing involves an auto loan and is the only option for used cars.
- At the end of a lease, you return the car to the dealership.
- At the end of a loan, you keep the car.
- Leases usually have lower monthly payments than auto loans.
- Leases are usually only available for drivers with good credit.
- Loans are available for most drivers.
- Your loan rate is determined by your credit score.
We also get questions about the differences between short term and long term agreements. Short term agreements are usually for people who only need a car for a month to two years, while long term agreements usually last for three years or more.
If you are shopping for a used car, and you are curious about the differences between a certified pre owned CPO car vs a used car, we will help you understand. A certified pre owned car is a special used car with:
- Low miles
- A newer model year
- A clean vehicle history report
- Warranty benefits
- Special financing opportunities
On the other hand, a used car is a typical used car with a variety of miles and model years in a range of conditions.
Lastly, we get questions about franchise dealerships and independent dealerships. BMW of Sarasota is a franchise dealership that is a part of the Morgan Auto Group. We are a dedicated BMW dealership with financing, services, and sales focused on the BMW brand.
An independent dealership usually is not connected to an automaker and usually sells used cars. It is independently owned, rather than part of a franchise program.
What are the Differences Between Leasing vs Financing?
If you are not paying cash for a car, then the payment options include leasing or financing.
Financing involves loans and down payments with monthly payments, rates, and interest. Interest rates are usually based on credit scores, and the better your credit score, the lower the interest rate. When you finance a car, you do not have any restrictions on mileage, modifications, and reselling it.
Monthly payments are based on the price of the car, minus your down payment, and then the interest is factored in. That total is divided into monthly payments based on the term.
Auto loans are available for new, certified pre owned, and used cars. The BMW of Sarasota finance team searches for the best rate and term, using lenders like BMW Financial Services as well as other national and local lenders, including credit unions.
Leases also have monthly payments, but they are factored differently. Leases are similar to long term rentals, so you only pay for the time that you have the car. The monthly payment involves the price of the car, minus the residual value what the car will be worth at the end of the term. Interest is added, and the total is divided into equal payments, often between 12 and 36 months. Leases are only available for new cars.
Because leases have residual values, they come with restrictions. You will have annual mileage limits, usually between 10000 and 15000 miles. You will also have to take care of the car and not modify it. You cannot sell or trade in the car during the lease term. At the end of the lease, you return the car to the dealership.
What are the Differences Between Short Term vs Long Term Agreements?
If you need a vehicle for two years or less, a short term agreement might be a good choice. A short term agreement functions like a lease, but for two years or less. This type of agreement from BMW of Sarasota is often a better financial choice compared to renting a car from an agency like Budget or Avis.
Short term agreements function like leases, with residual values, car care requirements, and limits on mileage. They usually have higher monthly payments than long term agreements.
Long term agreements are for longer terms, usually two years or more. These agreements often have high termination fees, so enter into them cautiously. They have lower monthly payments than short term agreements. Both agreement types require you to care for the car and stay within the mileage limits.
What are the Differences Between CPO vs Used Vehicles?
At BMW of Sarasota, we sell used cars and certified pre owned cars. Our inventory of used cars includes vehicles from BMW and other respected automakers like Mercedes Benz, Audi, and Volvo. Our certified pre owned cars CPO are only from BMW.
Not every used car can become a CPO model. The requirements for the certified pre owned BMW program include:
- Having fewer than 60000 miles
- Passing a rigorous inspection
- Passing a road test
- Being five model years or less
- A clean vehicle history report
Once a vehicle earns the CPO label, they come with several benefits that include:
- A one year unlimited mileage BMW Certified Pre Owned Limited Warranty
- 24 7 Roadside Assistance
- One complimentary oil change
- A complimentary loaner vehicle during the warranty term
- BMW Assist
- Special financing programs
Because CPO vehicles are newer, have limited mileage, and are thoroughly inspected, they usually have higher prices than a typical used car. At BMW of Sarasota, our used car inventory includes a variety of makes and models with transparent pricing and popular features.
What are the Differences Between Franchise Dealerships vs Independent Lots?
BMW of Sarasota is a franchise dealership connected to BMW. When you choose a vehicle from a franchise dealership like BMW of Sarasota, you get several benefits that include:
- BMW incentives and offers
- The BMW New Vehicle Limited Warranty and Powertrain Warranty for 4 years 50000 miles
- The opportunity to purchase additional BMW backed warranty coverage
- The BMW service center that uses genuine BMW parts and accessories
- Certified pre owned BMW models with the backing of the BMW brand and a thorough inspection
Around Bradenton, Venice, and North Port, you will find several independent car lots. These car lots are not affiliated with an automaker and usually only sell used cars. They usually offer financing, but no incentives or offers. Some might have car care centers, but they usually do not use genuine BMW parts.
Choose BMW of Sarasota for Your Automotive Needs in Sarasota, FL
Around Sarasota, Bradenton, and Venice, drivers choose BMW of Sarasota because we provide exceptional, customer focused service. Whether you are buying your first BMW or you have been a loyal customer for years, we provide a personalized experience while you are shopping for, financing, or caring for a vehicle.
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