If you’re looking at getting behind the wheel of a new car, you have a big decision to make on whether to lease or finance the vehicle. Both options have unique advantages, but it’s important to understand their differences so you can make an informed decision.
The pros of leasing
When you choose to lease a new vehicle, you’re essentially renting it for a set period — usually two or three years. Rather than paying a monthly amount towards the car’s total value, you’ll pay the amount that the car will depreciate while you have it. The result is that your monthly costs will probably be lower than they would be if you were financing. Most leased vehicles also still fall under their factory warranty, meaning you may receive complimentary scheduled maintenance.
The pros of financing
The process of financing a car is fairly simple: you typically put down a percentage of the vehicle’s cost upfront and secure a loan for the remaining value. Then, you’ll pay off that amount — plus interest — over an agreed-upon timeframe. The biggest advantage of this approach is that, while the payments may be slightly higher than you’d find in a lease, there are no restrictions on what you can do with the vehicle, and you’ll eventually own it outright.
Whether you and your family decide to finance or lease your next vehicle depends on what you plan to use it for, your personal finance, and numerous other factors. For some expert advice on which route to go, don’t hesitate to call the finance experts at DeLillo Chevrolet, right here in Huntington Beach, California.