Lease Vs Finance
The most obvious difference between leasing and financing is that with a lease, you get a new car every few years and never have to worry about selling it. When you finance a car, you're buying it, so once you pay off the loan, it's yours free and clear.
Buying a car is almost always cheaper in the long run. The longer you own the car, the more you save. There are other considerations, like wanting the latest technology and avoiding expensive repair bills for an older car, in which leasing may be the better option. Here's a breakdown of some key considerations:
Leasing
- Leasing a car often has a lower monthly payment
- Some lease agreements do not require a down payment up front
- If you use your vehicle for work, a leased car's depreciation and monthly payments can be deducted on your taxes-a financed car's costs cannot
Financing
- It's your car, so you can go hard on it, and drive it as much or as little as you want, without worrying about extra mileage & wear-and-tear fees that come with leasing
- You can sell your car whenever you want, earning back some of the money you've spent
- As soon as your financing term is up, you're free from monthly payments