Buying vs Leasing in 2022
If you have been considering getting a new car, you have probably noticed that there is a wide range of cars to choose from. While trying to pick the perfect car that Is able to fit your needs can be a bit confusing and stressful, trying to figure out whether or not you should buy or lease the car can be just as confusing.
There are many pros and cons to both financing and leasing a vehicle. Keep Reading to find out which choice would be right for you.
What is Financing?
For most people, when they want to buy a new car, they do not have the money to pay for the full price of the vehicle at one time. So, instead, they choose to get a car loan from a trusted bank or other financial institution - This is called financing.
When you finance a car, you borrow enough money to pay for the car and agree to pay the lender back in monthly installments. Once you have paid the loan back completely, you will officially be the owner of the vehicle.
What is Leasing?
When you lease a vehicle, you are agreeing to use the vehicle for a limited time. Different leasing agreements will have different term limits, but the average leasing period is around 18 months. While you are using the vehicle, you will be expected to pay a monthly payment. However, once the leasing period is up, you will return the vehicle and will no longer be expected to make monthly payments. When you lease a vehicle, you are essentially renting the car for a specified amount of time.
Leasing Payments vs Financing Payments
Whether you lease or finance a vehicle, you will be expected to make monthly payments for the vehicle.
When you finance a vehicle, you are paying for the full price of the vehicle. There will also be financing charges and other fees that will be added to your monthly payments. This means that you may have to pay more money each month when you finance a vehicle.
When you lease a vehicle, you are not required to pay for the full amount of the vehicle. Instead, you are only required to pay for a portion of the vehicle, this means that leasing payments are usually smaller than financing payments.
Wear and Tear
When you lease a vehicle, you will need to make sure that the vehicle stays in pristine condition. Some minor wear and tear will be covered in your lease agreement. However, if there is any excessive damage, you will be expected to pay for repairs.
When you are financing the car, you will not face any additional charges for normal wear and tear. However, any excessive damage may lower the resale and trade-in value.
Lease or Finance a Car in Trenton Today
If you are still not sure whether leasing or financing is right for you, feel free to contact us today. Our experienced and knowledgeable financing department can answer any questions that you may have and can explain the various options that are available to you.