Choosing all the features that you want and the car that you want to drive is typically the easy part. However, when it comes to financing a vehicle, it can be difficult to know what the best choices are to allow you to have the vehicle that you want at a price that works for you. One way to figure out what financing would be ideal is by finding out whether a lease or loan suits your lifestyle.

Learn the benefits of both leases and loans to discover which option would serve you best.


Car Loans

Many choose to loan because ownership, and the road to it, comes with lots of perks. When you take out a loan on a vehicle, it's possible to outpace the depreciation of the vehicle with your monthly payments and build some equity. If you drive a lot, you won't have to worry about exceeding a limit for the number of miles you drive in a year.

Once you own the car, you have no more payments, and you can do whatever you want with it: paint it purple, modify the interior, or sell it and have it go towards your next vehicle. Taking out a loan is a good idea if you want the long-term benefits that come with it and have the money to pay for the down payment and higher monthly payments up front.

Auto Leasing

If you want to take advantage of lower monthly payments and enjoy the latest technology, then leasing could be the right option for you. Leasing doesn't require the same amount of money up front, with sometimes there being no down payment required, and also allows you to pay less expensive monthly payments. Since you are not paying to own, the depreciation of the vehicle is the main cost.

You may not be able to build equity, but you can build your credit by making payments on time. When your lease is up, you can simply drop it off at the dealership after paying any final fees incurred.


Want to learn more about your financing options? Contact our finance department to receive expert advice and help!

Categories: Finance