Should I Finance or Lease my New Vehicle?
When it comes to getting behind the wheel of your dream car, you have two main options: financing or leasing.
Financing a new vehicle is a great option if you plan to keep the car for a long time and want to build equity in it. When you finance, you'll typically make a down payment and then pay off the remaining balance, plus interest, over the course of several years. Once the loan is paid off, the vehicle is yours to keep. This option allows for more flexibility in terms of customization, mileage, and resale.
Leasing, on the other hand, is ideal if you prefer to drive a new car every few years and want to keep your monthly payments low. When you lease, you're essentially renting the vehicle for a set term, usually 2-3 years. You'll make monthly payments based on the vehicle's depreciation during the lease term, and at the end of the lease, you can either return the car or purchase it for a predetermined price. Leasing often comes with lower monthly payments, but you'll need to be mindful of mileage restrictions and wear-and-tear guidelines.