If you are looking for your next car, you may be struggling with how to pay for it. We understand that it can be a difficult choice. However, you need to know that you have options to buy your next car. What’s the difference between leasing a new car or financing one? Here’s all the information you need to know.
Leasing versus Financing
If you decide to lease a car, you will make an up-front payment, which usually covers taxes and fees. You will then pay a lower monthly payment each month, which basically covers the dealer’s cost for depreciation of the vehicle. Depreciation is the amount of value a new car loses once it leaves the lot. Leasing a vehicle means that you will be restricted on the amount of miles you can drive each year. If you go over the mileage limit, you will have to pay a fine. You will be leasing a car for a specific period of time, and once your lease is up, you turn your car back in. This allows you to get a new car every couple of years.
Financing a car means you may not have to make an up-front payment, but the more money you put down, the cheaper your monthly payments will be. You also will own the car, rather than the dealership owning the car. You are not limited on your mileage, but you need to know that once the warranty expires, you will be on the hook for any repairs. You can make modifications to your car, because you own it, and once you pay off the loan, you can either trade it in, or sell it and keep the profit.
When you’re ready to take a look at your next car, give My Maven Autosa call at 631-MYMAVEN!