Lease vs Financing
Learn Whether You Should Lease or Finance Your Next Car Through Autoloan Credit Express
Besides picking out the model of your next ride, arguably the biggest automotive decision Fall River, MA customers have to make is whether to finance or lease their new vehicle. Financing and buying your car has its benefits while leasing has its own perks. Each provides a shopping route with polarizing advantages and disadvantages, depending on your driving lifestyle. Our financial experts at Autoloan Credit Express can sit down with SouthCoast shoppers and discuss the advantages of financing and leasing before discovering which is best suited for your budget.
How Financing & Leasing Differ
Financing a new car results in higher monthly payments, but you own an asset that you can build equity in over time. Leasing leads to lower monthly payments, but there's no ownership involved, as you drive a new vehicle with the latest features around Fall River every few years. Here's a breakdown of how leasing and financing stack up head-to-head:
Buying & Financing A New Car
- Ownership - Fall River drivers get to own the vehicle and keep it as long as they want.
- Up-Front Costs - A down payment, taxes, vehicle registration, taxes, and additional fees are all up-front costs for SouthCoast customers to prepare for.
- Monthly Payments - When you finance a vehicle, monthly payments are calculated by the entire purchase price of the vehicle plus interest, divided by the length of the loan in months. At Autoloan Credit Express, we work with New Bedford customers to provide them with the lowest interest auto loans they're eligible for.
- Early Termination - No penalties here! Sell or trade in your vehicle whenever you please. If there is a remaining loan balance, you can use the money from selling your car to pay it off.
- Vehicle Return - Sell or trade in your car on your own time frame. When you want a different vehicle, you can work with appraisal experts and get the most out of the equity you built in the vehicle.
- Future Value - New vehicles depreciate over time, and that starts from the moment you drive the car off the lot. Its trade value can be used as cash or a trade-in credit on another vehicle.
- Mileage - Drive as many miles as you want! The more miles you rack up, the lower the car's trade-in value is.
- Excessive Wear and Tear -Â SouthCoast car owners don't have to worry about excessive wear and tear, though it is recommended to stay on top of maintenance for the sake of vehicle safety and longevity.
- End of Term - Once your loan term finishes, no further payments are required.
- Customization - Customize your vehicle as you please. It's yours, so personalize it with parts, accessories, performance boosters, select paint jobs, and more.
Leasing a New Car
- Ownership - You don't own the vehicle when you lease. You can switch to ownership by buying out the lease.
- Up-Front Costs - Leasing often requires little to no down payment, but SouthCoast drivers may need to make a first month's payment, a refundable security deposit, an acquisition fee, taxes, vehicle registration, and additional fees.
- Monthly Payments - Enjoy lower monthly payments - generally - with leasing. Fall River customers who lease only pay for the vehicle's expected depreciation value during the lease term.
- Early Termination - You may get charged for getting out of your lease early. Ask the dealership you're buying from in Fall River or New Bedford about early termination fees or if they have a lease buyout service available.
- Vehicle Return - At the end of your lease, simply return your leased vehicle to the dealership. Walk away and lease your next vehicle or choose your next driving adventure. There's no dealing with used car hassles when leasing. The leasing contract will discuss in what condition the vehicle must be returned in.
- Future Value - You don't build any equity in a leased vehicle, but its future value doesn't impact you.
- Mileage - Your lease agreement specifies the number of miles you're limited to in a year. You'll be charged for exceeding the mileage limit.
- Excessive Wear and Tear - Anything beyond normal wear and tear will be specified in your leasing agreement. You'll likely have to cover costs for excessive wear and tear. Since leases only last a few years, excessive wear and tear is not common if you take care of the vehicle.
- End of Term - When your lease expires, know your dealership's lease return process and the options you have. You can buy out your lease and own the car if you love the ride. You can also lease another car or go your separate ways.
- Customization - It's best to not customize a leased vehicle, as any custom parts or modifications must be removed prior to returning.
Chat with Autoloan Credit Express to Discuss Financing & Leasing
Before you pick out a vehicle, come visit Autoloan Credit Express to discuss whether financing or leasing works best for your budget. Both have their perks, and we'll help guide your financing journey. If you are leaning towards financing, jumpstart the process by getting pre-approved with our online finance application.
-
Autoloan Credit Express
428 Pleasant Street
Fall River, MA 02721
- Sales: (508) 673-7646
AdChoices