Leasing vs Financing: Choosing The Best Option

Choosing a vehicle you love is the fun part. But deciding whether to lease or finance takes a lot more consideration. Leasing and financing have their strong suits that many buyers enjoy. However, they also have some downsides to consider. Here at Bob Allen Chrysler-Dodge-Jeep-FIAT, we're here to help our customers every step of the way. We don't just want to help you find the perfect vehicle, we also want to ensure that you can afford it in a way that's comfortable for you. Read on to learn about leasing vs. financing near Nicholasville.

Leasing vs. Financing: Which is Best For You?

Leasing and financing both have their benefits. Before we go into detail, we're going to first explain what leasing and financing is as it pertains to a vehicle purchase.

A lease is something that enables Lexington area drivers to drive a new vehicle without needing to pay a lump sum of money or taking out a loan. Instead, the customer will give a small down payment and then proceed to make monthly payments for the term of the lease.

Financing a car means that the buyer will take out a loan to pay for the car that will then be paid back over time. Taking out a loan means that you agree to pay back the amount borrowed plus any interest and fees that occur within a set time period.

Leasing

Pros of Leasing

Leasing allows you to drive the latest models at all times. If you're someone who enjoys the luxuries of a new vehicle, this can be a real perk. Leasing a vehicle provides you with warranty protection through the lease term. This is typically three years or when you reach 36,000 miles.

Leasing means that you will have lower fees to drive off the lot with the potential of no down payment at all. Leasing means that drivers will typically have a lower monthly payment.

Cons of Leasing

Leasing a vehicle means that you will have mileage restrictions. This isn't ideal for individuals who plan to do a lot of traveling. There is a potential for additional fees incurred during your term for things like mileage overage, wear and tear, and early termination.

Financing

Pros of Financing

Those who finance a vehicle won't have any mileage restrictions. This is great if you plan on doing a lot of driving. You won't incur any wear and tear charges since you own the vehicle, and so you have the option to sell or trade-in your vehicle at a later time.

Cons of Financing

Financing means that you will typically have higher monthly payments. Lebanon, KY area shoppers will generally put down a relatively larger down payment compared to leasing. There are long-term maintenance costs associated with financing since you will be responsible for caring for the vehicle even after your warranty is finished.

Lease or Financing: Choosing the Right Option

Leasing and financing are both great options but which option you choose will depend on your needs and ultimately which benefits suit you best. With that said, leasing is a great option for those Danville area shoppers who want a smaller down payment, lower note, and the latest vehicle. But keep in mind that leasing your vehicle means you will have mileage restrictions and can potentially incur extra fees when the lease term ends.

Financing is a great option for individuals who are looking for an investment and don't want to deal with the hassle of feeling restricted. However, you will need to save some money for a down payment and be prepared for a higher car note.

Contact Us Today

If you have any questions about our available inventory or want to explore more options to fund your dream vehicle, feel free to reach out to someone from our finance team today.