American Car Financing vs. Leasing: What’s Right for You?
Car financing involves taking out a loan to buy a vehicle. You own the car once the loan is paid off, which can be advantageous for long-term value.
Leasing is like renting a car for a set period. It usually involves lower monthly payments, but you return the car at the end of the lease term.
Ownership is a major perk of financing. You can keep the car as long as you want and modify it to your liking without restrictions.
Leasing often means lower monthly payments and the ability to drive a new car every few years. It’s a good option if you prefer new models and lower costs.
Leases typically come with mileage limits. Exceeding these limits can result in extra fees, so it’s important to estimate your driving needs carefully.
Financing usually requires a larger down payment, while leasing may need a lower down payment. Evaluate your budget to choose the best option for you.
At the end of a lease, you return the car and have the option to lease a new one. With financing, you keep the car or sell it and buy a new one.