People are sometimes not sure about lease versus finance options.Typically a leasing option is for people that have good credit. It’s an option for those who wish to drive a new vehicle every 2 to 4 years. You typically will require cash down, get a term of 2 to 4 years and a low monthly payment. When your deciding to lease or buy a car, its is good to remember that the kilometers you drive during the term of the lease will have restrictions on the lease agreement.
Lease Your Vehicle
With leasing, you are responsible for the maintenance of the vehicle unless you purchase a full service package. This package will include your regular maintenance up until a certain kilometer. Depending on how much you drive, this could last until the end of your term. At the end of your lease you could either purchase the vehicle outright and pay what is called the residual value or buy out plus any additional charges such as excess kilometer charges, damages etc. You may keep the vehicle and pay the balance owing at the end of your term or return the vehicle to the leasing company or dealer.
Lease Versus Finance
A purchase is usually with cash or financing for new or pre-owned. People that decide to purchase are looking to keep the vehicle. They purchase with the goal of owning the vehicle and being debt free at the end of the term. You also save cost in the long term. Hope this answers your question, Should you lease or buy a car?
Now that you know if you want to buy or lease, it’s time to apply for your financing!