Lease vs Finance

Financing/Buying a Car

The more common of the two options is financing the purchase of a vehicle. This involves applying for a loan and making monthly payments toward the full value of the vehicle. Paying off this loan means you gain full ownership of the vehicle. This is perhaps the most important advantage of buying your car, as it will be all yours.

Along with ownership, financing your car comes with these perks:

• You're free to customize and modify your car as much as you like.
• You can drive as many miles as you want.
• You can sell or trade your car freely.
• Wear and tear is worry-free since you're the only one with a stake in the vehicle.

Drivers who have lots of extended road trips in the future or just want to be in control of things will want to finance their cars. Financing lets you make your ride uniquely yours well into the future.

 Leasing a Car

More drivers are discovering the benefits of leasing their cars, trucks, and SUVs thanks to the unique advantages. Leases allow you to drive the car for a set period of time before returning it to the dealer. Lease terms typically last for several years and come with these benefits:

• You'll potentially have lower monthly payments when you lease, as you're only covering depreciation rather than the full value. You may also get to skip down payments.
• Each new lease comes with a new warranty. Leasing your rides means you'll always have warranty coverage for parts and repairs.
• You get to keep your options open until the day the lease ends. You can put off your next move until the day comes and see what your needs are.

When your lease term ends, you have three possible choices to make. If you've grown to love your leased car, you can finance its purchase and keep it. Drivers who love remaining on the cutting edge can lease the latest model and see what new innovations have been made over the years. Finally, you can lease a different model if your needs on the road are different, such as downsizing or starting a family.