Both leasing and financing are credible options if you're planning to get a vehicle. However, the decision depends on many factors, such as your current financial situation, your prospects, and your saving goals. What may be right for another individual may not be right for you, which is why leasing vs. financing is a debate one must encounter on a personal level.
Both leasing and financing come with their own set of costs and benefits, but it's generally believed that financing may result in higher monthly payments than leasing. Here are some more facts about leasing vs. financing to help you take your pick.
Leasing vs. Financing: What's Better and Why?
Leasing is a better choice if you are someone who likes to drive a new vehicle every few years, while financing is a better option if you want total ownership of the car. Moreover, if you're wondering, ” How can I lower my car payment?” leasing is again a better idea, but by financing a loan, you can also enjoy perks such as the ability to customize your car and drive it for as long as you like.
If you think you can lead a predictable and stable lifestyle with a fixed mileage and have no issues with car maintenance, then leasing is surely your cup of tea. On the other hand, if your lifestyle is unpredictable and you also don't like fixed mileage, then financing a loan is definitely a better idea.
The Bottom Line
Again, leasing vs. financing is based on personal preferences. While financing could mean higher monthly payments, it also means that you can get ownership of the car once all the payments are made. On the other hand, leasing may offer lower monthly rates, but it also comes with its own downsides, such as a fixed amount of mileage, strict wear, and tear rules, no permission to customize the car, etc.
Leasing seems like a better choice for people who don’t mind living a fixed and predictable lifestyle with the freedom to change their vehicle after every few years. On the other hand, some people find financing as a more credible choice because they would rather enjoy extra mileage and customize their vehicle than live a fixed lifestyle.
The best part about both options is that it is possible to find better deals if you’re not satisfied with the current terms. For example, with financing, you have the option to refinance your car, and with leasing, you have the option to release your car.