Should I Lease or Buy a Car?

While financing a vehicle is typically more popular among drivers in the Hayward area, regardless of their credit, many are discovering that leasing offers a wide range of benefits worth considering. What exactly is leasing? When you lease, rather than paying for the entire vehicle, you end up paying for what you actually use. Your monthly payments, which are typically more affordable than they would be with traditional financing, are determined based on the estimated depreciation of your vehicle in addition to the cost of borrowing. Here are just a few additional benefits of leasing:

• Leasing is less expensive up front: In most cases, it does not cost as much money up front to lease a vehicle.
• Less worry about the potential for negative equity: There is significantly less risk that your car will decline in value so much so that it is worth less than the projected residual value.
• Warranty coverage peace of mind: You don’t have to worry about costly out-of-pocket expenses when you lease. Your car will likely be covered under a factory warranty for the duration of the lease.
• Enjoy more affordable payments and shorter terms: Because your monthly payments are lower, features you may not have been able to afford before could now be within reach.

While leasing may be the more affordable option for some drivers in the Cumberland area, financing has its own set of advantages. Drivers have more freedom when it comes to creating the car of their dreams as well as the ability to drive without limits.

• There are no mileage limits with financing: If you do a lot of traveling or you have a long commute to the office, financing may be your best choice. When you lease, you are bound by mileage restrictions. Go over those limits, and you will be charged a penalty.
• Customize your ride: If you plan on making any modifications to your vehicle, such as upgrading the sound system or changing the color, you should finance the vehicle. Most leases do not allow you to alter the vehicle in any way.
• Sell your car at any time: If you decide that it’s time for a different vehicle, you have the freedom to sell your car when you want to.
• Financing becomes more affordable over time: Once your vehicle is paid off, it is yours and you no longer have to worry about monthly payments.