Leasing Vs Financing, Here's What You Need to Know

Leasing Vs Financing, Here's What You Need to Know

Posted on June 26, 2019

If you are looking for a new vehicle, you have probably seen that there are different ways to finalize the purchase. We can finance the vehicle, but we can also lease it. As when buying a house or renting an apartment, there are significant differences between the two possibilities and in both cases there are advantages and disadvantages.

The best choice for our situation will ultimately depend on our needs and our budget.

Leasing

As its name indicates, the lease gives you the opportunity to acquire a vehicle without it being officially yours at a more affordable price. We lease the vehicle over a period of 24 to 60 months (in general) and we have the option to buy the vehicle at the end or simply give it back to the dealer. The benefits here include a lower monthly payment, more flexibility to replace our vehicle more regularly and the fact that we do not suffer the inconvenience of depreciation.

Financing

Financing makes it possible to buy a vehicle over a period of 24 to 84 months (sometimes more). The payment will generally be higher, but at least we are paying for a vehicle that will belong to us and that will be ours within a few years. Things like maintenance therefore become an investment.

There are several other advantages and differences between the two possibilities. For more information, contact us today at Vickar Ford!