Are you shopping for a new car and can't decide whether to lease or finance it? There are several factors that make each one beneficial for you according to your budget and how long you plan to drive the car.
Here are the six notable differences between leasing and financing your new vehicle.
- Leases are limited to a few years and financing offers buyers more flexible term lengths.
- Lease payments are lower than loan payments because you'll only pay for a portion of the car's value.
- A leased vehicle must be returned at the end of the term compared to fully owning a financed car after the final payment.
- Leases limit drivers to a maximum number of miles according to the terms whereas your purchased vehicle can be driven as much as you want without penalties.
- Any excessive wear and tear will incur fees for a leased vehicle.
- A leased vehicle is limited to available trims and standard options but a financed vehicle you'll own can be customized inside and out.
