When it comes time to get a new vehicle, one of the biggest decisions you'll need to make is whether to finance or lease. Both options have unique benefits and drawbacks. In this blog post, we'll break down the key differences between financing and leasing to help you determine which is the better option for your needs.
Financing
Financing involves taking out a car loan to purchase the vehicle. You'll typically make a down payment, then make monthly payments over a set repayment term to pay off the remaining balance of the loan. Here are some of the main pros and cons of financing:
Pros -
- You own the vehicle - Once you pay off the loan, you own the car free and clear
- No mileage restrictions - You can drive the car around Coshocton as much as you want without penalties
- You can customize the car - You can modify or upgrade a financed car however you want
- You can sell the car whenever you want - You have the flexibility to sell or trade in a financed car at any time
Leasing
With leasing, you essentially rent the vehicle from a leasing company for a fixed term, usually 2-4 years. You'll make lower monthly payments than financing, but you must return the car at the end of the lease.
Pros -
- Lower monthly payments - Monthly payments are typically lower than financing
- Drive a newer car more often - You can lease a new car every few years
- Better vehicle protection - Leases often include maintenance and extended warranty coverage
- No hassle selling or trading in - You simply return the car at the end of the lease
As you can see, both financing and leasing have their advantages for Zanesville drivers. Financing is usually better if you plan to keep the car for a long time. Leasing allows you to drive a new car around Byesville more frequently with lower monthly payments, but you'll never build any equity.
If you're ready to get into a new vehicle, be sure to apply for financing online using our dealership's secure application form. Completing it ahead of time will save you time when you visit our Ford dealership near Newcomerstown to finalize everything.
Cambridge, OH is a great place to purchase your next vehicle. With our help at Dunning Ford, you can decide whether financing or leasing better meets your needs and budget.