The value of Third Party Banks

2016 Lexus GSF

2016 Lexus GSF Courtesy: aolcdn

When leasing a car there are many things that can get in the way, and can make the process more costly. Some may not know that it’s more expensive, that’s because they are unaware of the fact that money can be saved here.

This paragraph may seem out of place, but please bear with me, it’ll make it easier to understand the next paragraph. When leasing a car, who does the car actually belong to? It belongs to a bank. The bank buys the car from the dealership and the customer pays the monthly payment to the bank. Each car manufacturer has their specific bank/banks that they are affiliated with that they use for auto leases.

Now, there is something called “Third Party Banks (TPB)”. These banks aren’t entirely affiliated with the car manufacturers. TPB can be a good thing and sometimes the opposite. They often offer monthly payments that are below the average. But, some TPB’s will bill the customer above the average for wear and tear at the conclusion of the lease. After this being said, some may think “I’m most definitely staying away from TPB’s”. Wait, there is a way to avoid being overcharged. Purchase a “damage waiver”. The damage waiver will cover the cost of damages. See the previous post for a description of damage waiver.

As I mentioned earlier, TPB can be a good thing. So, if you’re leasing a car and you were offered a great deal, but it’s through a TPB, do your research. A lot of money can be saved when using TPB’s, but at the same time money can be lost. Be careful, do your research thoroughly and correctly, purchase a damage waiver and you’ll be fine, and you’ll save a lot of money as well.

Comment below if you have used a TPB in the past for your car lease, and what the experience was like.

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