Are you in the market to purchase a new car? If so, you basically have three options. You can pay for a car in cash, you can lease a vehicle or you can have a car financed. And being that not a lot of us are independently wealthy to the point where we can put down several thousand dollars at once, that means we have to choose between leasing and financing.
If you’re interested in knowing some of the pros and cons that come with both options, you’re in luck. We’ve actually provided you with a list of both. That way, when it’s time to go to a car dealer, you’ll already have a pretty good idea about which choice is actually best for you.
The Pros and Cons of Leasing
If you’re someone who likes the thought of driving a different kind of car every several months, then leasing a vehicle would definitely be the right route for you to take. And since you’re not looking to purchase the car, the advantages that come with this particular option is that you end up paying less money each month, you don’t have to worry about the effects of depreciation and when it comes to upfront costs, basically all that’s required is your first month’s payment, a deposit and any kinds of applicable fees. As far as the disadvantages that come with making this choice, the biggest one is that you are usually given a limit when it comes to the amount of miles that you can drive. Plus, if you decide that for someone reason you want to end the lease early, it can end up costing you just as much money as if you had honored the contract in the first place.
The Pros and Cons of Financing
On the other hand, if you want to own the car that you’re considering, it’s best to get it financed. The main benefits that come with going this route is the money that you pay each month will go towards owning the car, you can drive as many miles as you would like, at the end of your loan term you can build up equity towards purchasing your next vehicle, you can sell or trade your car at any time and you are free to customize your car to look however you’d like it to. As far as the disadvantages, for one thing, you usually will need more money upfront than you would with a lease. This means that you’ll need to go through a dealer or bank so that you can see about getting a car loan (just make sure to avoid companies like www.eTitleLoan.com because they tend to charge a lot of interest). Also, when you’re financing a car, it starts to depreciate the moment you drive it off of the lot, which means that it will almost immediately lose value. Plus, the interest rates on financing can sometimes be pretty steep.
As you can see, there are pros and cons to leasing and financing. Deciding what’s best for you is all about assessing your own needs and deciding which option would be the most suitable. For more information on leasing and financing a new car, contact a reputable car dealer in your area.