Leasing vs Financing vs Buying a Used Car
Are you in the beginning stages of the car shopping process? If so, you may be wondering, is it better to lease or buy a car? Both leasing and buying a car can be good options and each has its own pros and cons. Knowing whether leasing a car vs buying a car is right for you can feel like a tough decision and there is a lot to consider when choosing.
At Autorama, we are passionate about getting you behind the wheel of the car of your dreams. We believe that financing a car can be a great way to allow drivers of all credit levels to drive cars they love. We offer low-credit financing and no-credit financing options that work for everyone. Apply for auto financing online and contact us today to see why financing could be your best bet when comparing leasing vs financing.
What Is The Difference Between a Lease and Finance?
When you lease a car, you are not the owner. At the end of the term of the lease, you return the vehicle to the dealership. When you are financing a car you are the owner and at the end of your lease, the vehicle is yours. Some people enjoy leases as it allows them to get new cars more often. Buying a car means you own it. When you finish paying it off it is yours. This is an ideal solution for many car buyers and involves no penalties if you want to sell or trade-in a vehicle if your circumstances change.
Is it Better to Lease or Finance a Car?
Leasing can be a good option for some, but for many financings is the preferred option. When you finance a car, you can be penalized for excess mileage, wear and tear, and early lease termination. You have less flexibility over how you use your car when you lease. When you finance a car, you can drive it as much or as little as you would like and may also enjoy lower insurance rates when compared to leasing a car.
Can I Lease a Car with Low Credit?
In many cases, car dealerships will expect that you have good credit when looking to lease a car. Though it may not be impossible to obtain a lease with bad credit, it will be more difficult. Financing offers more flexible options, and many dealerships can accommodate no credit financing and low credit financing to help you get into a car you love. For more information on buying a car with low credit see our previous article, Credit and Car Buying 101.