What’s the Difference Between a Loan and a Lease?




 

The biggest difference between a lease and a loan is that at the end of a loan, you own the vehicle, and at the end of a lease, you don’t. Of course, there is more to consider than whether or not you would like to own the car at the end of your time financing a car. There are monthly payments to consider, down payments, depreciation, end of term fees, and more.

Here, at New Motors, we're not here to overwhelm you by the possibilities or make you chose an option you don't want; we're only here to help you when you need it. We can find a range of car loan and lease options that suit your budget. We will do our best to work with you to discover whether a loan or a lease is the best option for you.

To give a basic rundown for what each option offers, let's see some of the benefits to both a loan and a lease.

 

Why could a loan be the right choice for you? Well, if you have ever leased a car before, you won't have to worry about mileage restrictions. If you drive a lot of miles, this can be a huge load off your mind.

Once you pay off your loan, you won't have to deal with monthly payments anymore, and you can sell it to have it go toward your next car. Overall, you have a bit more wiggle room when it comes to how you choose to drive and what you choose to do with the car.

 

When you lease a car, you have more restrictions, but you do not have to pay as much for monthly payments and down payments. If you have found selling your old car a hassle, leasing allows you to drop off your leased car at the end of its lease and immediately start looking for whatever is next. Since you have lower payments, you can choose to put extra money towards the features you want.

 

Financing can be complicated and frustrating when you either go at it alone or work with someone who is unhelpful. Our finance department is always happy to explain the finer points of financing and help you understand exactly what each option means. We want to help you find the financing solution that suits you best.

If you would like more information on leases and loans, follow the link for more information.

Categories: Finance

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