Here’s How You Choose Between Financing and Leasing Your Next Car

May 15th, 2019 by

Dealership staff discussing financing vs. leasing

When it comes to buying a new vehicle, shoppers have many decisions before them — not just decisions about make and model, but also decisions about how they’re going to pay for it. The two basic options are to either to lease the car or purchase it, often with the help of a financing package. Before you commit to either of these options, it’s important to step back and understand what each of them means.

What Is Leasing?

When you lease a vehicle, you’re not paying for the full value of the car. Additional fees and interest are typically included in the lease terms as well. A small payment will be required up front, but the remainder of the cost is paid in monthly installments, according to a payment schedule that’s agreed upon in advance.

Leasing ultimately means that you pay less money on average for your vehicle both up front and in total. Many repairs are covered under warranty, and you won’t be obligated to a long-term commitment with the car in the event that you want to move on.

What About Other Financing Options?

Financing means getting a loan from a bank, credit union, or perhaps from the dealership itself. Again, you’ll likely be asked to make a small down payment, and then continue making monthly payments until the total value of the car is paid in full. Interest is included. The term of vehicle financing can be negotiated, but the average timeline is seven or eight years.

When you’re done paying off the value of the car, you will own it outright. You also won’t be burdened by any mileage restrictions. And if you want to trade your car for something else, you have the freedom to do so.

Finance or Lease in West Palm Beach, Florida

There’s no one right answer here, and your decision will ultimately come down to what’s best for you, your family, and your financial situation.

At INFINITI of Palm Beaches in West Palm Beach, Florida, we’d love to help you make an informed decision and to provide you with transparent information about either leasing or financing. Contact our INFINITI Finance Center to learn more.