To Lease or Finance
When buying a new car, you want to do your research to make sure it is the right descision, especially when it comes to deciding how you want to pay for it.
So the question is.. To Lease or Finance?
Here are a couple summarized Pros and Cons of each payment method.
Leasing…. You’re borrowing and repaying the amount that the car depreciates in the time you have it, plus finance charges.
- You can drive a higher priced, better equipped vehicle than you might otherwise not be able to afford.
- You don’t have to worry about fluctuations of the cars trade-in value or go through the hassle of selling it when its time to move on.
- At the end you can just drop off the car at the dealer.
- If you lease one car after another, monthly payments go on forever.
- In the end, leasing usually costs more than an equvilant loan.
- Lease contracts specify a limited number of miles, if you go over that limit, you’ll have to pay an excess milage penalty.
- If you don’t maintain the vehicle in good condition, you’ll have to pay excess wear-and-tear charges when you turn it in.
Financing…. You agree to pay, over a period of time, the amount financed plus a finance charge.
- The car is yours at the end of the loan.
- You can drive as many miles as you want.
- You can build up trade-in or resale value
- There is no risk of possible lease end charges.
- Monthly payments are generally higher.
- You need a down payment in the form of either a trade-in or cash.
- Your vehicle will quickly lose value, depreciation begins immediately after purchase.
So, while doing your research you have to look at what will benefit you the most in the end with either financing or leasing.
Let us know your thoughts on leasing and financing using the hashtag #LorF