Financing or Leasing Your New Vehicle
The Difference Between Leasing and Financing
When you choose to lease a vehicle, you pay only for the portion of the vehicle that you will use and return the vehicle to the dealer after a specified amount of time. When you finance a vehicle, you are taking out a loan and purchasing the vehicle. Once the loan is paid you own the vehicle outright. There are benefits to both options, and many things to consider as you determine what’s best for you.
A lease will have a lower monthly payment, with little to no down payment. Maintenance and repair costs are also minimal as most lease terms coincide with the manufacturer warranty. You will pay less in taxes with a lease as well because you are only paying tax on the percentage of the vehicle you use. There are some potential drawbacks to leasing, however. Your mileage is limited to a set amount per year and overage charges can add up quickly. Leasing is more expensive in the long run because you will always have a car payment; once your lease ends and you return the vehicle, you will have to lease or finance another vehicle. Terminating a lease is also expensive, so you’ll want to know exactly what you’re getting into.
Drivers who finance a vehicle loan have a higher down payment and larger monthly payment, and are responsible for any maintenance or repairs after any warranty periods expire. However, this option is typically less expensive in the long run as, once your loan is repaid, you own the vehicle, and at that point you will no longer have a car payment. There are also no mileage penalties when you finance a vehicle though, so you are free to drive as much as you like without worry.
Let us Help You Determine What’s Right For You
With affordable financing options and flexible lease terms, the finance experts at RBM of Alpharetta are ready to help you determine the best financial plan for you. Fill our our online financing application for pre-approval, or stop by to get a quote. Monday through Saturday, you can find us at 345 McFarland Parkway in Alpharetta. Give us a call at (678) 637-2333 with any questions!