General questions about financing:
What's the difference between a loan and a lease? When you obtain a loan for a vehicle, your down payment and your monthly payments go toward the total purchase price of your vehicle. When you have paid off the financing, you own your car.
When you lease a vehicle, you make payments to use that vehicle over the term of your lease. We always recommend that you consult you accountant or financial advisor to discuss you particular situation. At the end of your lease, you don't own your car, rather you have options; you can return it to the lease company, or you can purchase your vehicle for the pre-determined residual value and keep it.
How do I choose between financing with a lease or a loan? Consider what you want to drive, how much you plan to drive it, and how long you expect to keep it.
Leasing is worthwhile if...
- You want the most "vehicle" for your monthly payment;
- You drive less than 15,000 miles a year;
- You like to trade-in your car every three (3) years or less; and
- Owning your car outright is not important to you.
Financing is better if ...
- Owning your car outright is important to you;
- You plan to enjoy your vehicle for a long time (in excess of three (3) years);
- You want to customize your vehicle; and
- You want the maximum flexibility regarding the number of miles you drive and how long you keep your vehicle.