Leasing vs Financing a Car

September 17, 2019

Leasing vs Financing

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When you’re in the market for a new car, it’s important to have a full-spectrum view of your finance options. Perhaps the most important question for drivers looking to get behind the wheel of their next car is whether to choose between leasing vs. financing. How do you know which one will work with your lifestyle?

Well, the automotive professionals at Macon Car Credit wanted to help drivers near Macon, Warner Robins, and Milledgeville, GA, understand the benefits and drawbacks of leasing vs. financing a car. We welcome you to keep reading so you can decide which payment plan is better for you.

What Happens When You Sign a Lease?

Leasing is a mutual agreement between you and the dealership that allows you to drive a particular car for a certain length of time before returning it. Most lease terms range from two to three years, but some can last even longer. You’ll have monthly payments until you bring the car back at the end of your lease period.

Leasing vs Financing a vehicleDepending on your preferences and driving habits, there are a lot of benefits to leasing. You don’t have to worry about reselling the car when you’re finished with it. This means you’re able to avoid spending money on high-mileage maintenance down the road. You can just continue returning your leased vehicles and sign into a new lease to acquire the newest version of your car.

Additionally, your monthly payments could be much lower than if you were to purchase the same car. All you’re covering is the car’s depreciation caused by age, mileage, and wear while you have it. Dealers like to know the condition of their vehicles out on a lease, which means you may have routine maintenance included in your lease agreement.

Since you don’t own the car, there are some rules that you need to follow when it comes to mileage and wear. You’ll be required to stick to a certain number of miles driven per year. For most drivers, that suggests it’s best to stay away from cross-country road trips or long, frequent commutes. Also, your car has to be free of damage, aftermarket parts, and excessive wear upon returning it.

The Power of Financing to Buy

If you choose to purchase a vehicle, you can drive it for the duration of the car’s lifespan because it’s yours. Most drivers will finance to buy a new car. This means that you’ll submit a down payment that is then followed by monthly installments for a few years. After you’ve made all of those payments, you own the car completely.

Leasing vs Financing a CarFinancing comes with its own set of advantages. When you finance a car to buy, you negotiate loan terms with your dealership to suit your financial situation. If you could use smaller installments to pay off the car over a longer period of time, it likely shouldn’t be an issue.

Instead of leasing various cars with continuous payments over the years, the majority of drivers pay off the entire car in a few years. That means there are no restrictions on what you can do with your new car. It’s all yours, so repaint it, add custom parts, and drive it anywhere you want—maybe even all over the country.

There are a few things to think about before choosing to finance. It’s a long-term commitment that will include repair costs for as many years as you would like to drive the car. Since you’re paying to eventually own the car, monthly payments will probably be higher than if you leased the same model.

Learn More at Macon Car Credit

At Macon Car Credit, we hope that this page will guide you in your decision between leasing vs. financing a car. Regardless of your choice, you’ll want a reliable and up-to-date car to drive near Macon, Warner Robins, and Milledgeville, GA.

We invite you to scroll through our online inventory to find a car that piques your interest. Once you’ve found a car that you’d like to take for a spin, contact our dealership to schedule a test drive today!

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