Buying Vs. Leasing. What Is Your Best Option.
Should you buy or lease your next vehicle? Here is a an explanation of both types of financing. You need to do your research into both of them. Both are great options when it comes to getting a new car.
What Is Buying.
Traditional financing is when you get a car loan through a bank or lending source. You get a interest rate based on your credit score. When you term of the loan is done you own the car. The average term of a loan is 60 months. The down payment is a small amount and in some cases you may not even need a down payment. This is great for people who are looking to own there car over a longer period of time. With this loan you own more on the car then it is worth for the first part of the loan. This type of a loan can be used on new, used, and certified cars.
What Is Leasing.
When you lease a car a lot comes into play, not just your credit score. How many miles you will drive and what type of car you want come into play as well. The term of the loan is shorter then a traditional loan. On average a lease lasts 36 months. A big part of a lease is that your car is always under warranty. Also you get more car for your money. A person who is looking to stay up to date on the newest technology would love to lease. In the time of a traditional loan you will have been in two and a half cars with a lease.
What Should You Do.
Leasing may not be the best fit for you. As well as a traditional loan my not meet all of your needs. You need to do your research and find out what works best for you.
Ask yourself these questions to help you get started into looking in to buying or leasing. Look into both there is something for everyone.