Buy or Lease: Which is Right for You?
There is more than one way to drive off the lot with a vehicle you love. You can finance your vehicle, or you can lease it. Below, you can learn more about both of these options, and you can figure out which one is right for you.
What is Leasing a Vehicle?
A vehicle lease is like a long-term vehicle rental. When you lease a vehicle from a dealership, you will make a monthly payment to drive the car for three or four years. Then, when your lease term is up, you give the vehicle back to the dealership because it is not a vehicle that you own.
What is Financing a Vehicle?
Financing a vehicle is when you buy a vehicle with a car loan. Getting approved for financing means that you are approved to borrow money to buy a car, truck, or SUV. This loan is then repaid in monthly installments over the term of the loan, which can be anywhere from a few years to five or six years.
When you finance a vehicle, the car will be completely yours once you have finished paying off your car loan. That is different than a vehicle lease where the vehicle goes back to the dealership.
Which is Better for You?
Above, we discussed what leasing a vehicle is and what financing a vehicle is. Which one is right for you? The answer depends on your needs. Each option has different advantages, so let’s take a closer look at those.
Leasing a vehicle can be great if you like to change your vehicle every few years. If you don’t want to commit to a vehicle for a long period of time, leasing can be great for you. Leasing is also great because you do not have to worry as much about the depreciation of the vehicle because you do not own it. A vehicle lease can also offer you a lower monthly payment than vehicle financing, and it can be easier for people with lower credit scores to lease.
Financing is a great option for people that like to drive a lot of miles because leasing limits your mileage. Financing is also great for those that want to own the vehicle for years to come. When someone finances a vehicle, they will also be able to sell it when they want a new vehicle because they own the vehicle.
At Smith Chevy of Hammond, we can offer you a vehicle lease, as well as financing options. The one you choose depends on your needs and desires when it comes to your next vehicle upgrade. If you have any questions about which one is right for you, you can reach out to our staff at Smith Chevy of Hammond. We look forward to helping you with your next upgrade.
