In 2024, deciding whether to finance or lease your next car is an important choice. Both options have pros and cons to consider. This article from Antwerpen Chevrolet near Sykesville will explain the key differences and help you determine if financing or leasing is better for your needs.
Key Differences Between Financing and Leasing
When you finance a car, you are taking out a loan to purchase the vehicle. You will make monthly payments over a set repayment term, usually 36 to 72 months. Once you have paid off the loan, you will own the car free and clear.
With a lease, you do not buy the vehicle. Instead, you essentially rent it for a fixed period, usually 24 to 36 months. You make monthly payments just like financing, but at the end of the lease, you return the car unless you decide to buy it.
Benefits of Financing
Financing allows you to own your vehicle. After you pay off the loan, you can keep driving it around Mount Airy or sell/trade it in. Your monthly payments may be higher than leasing, but you build equity as you pay down the loan.
Benefits of Leasing
Leasing often offers lower monthly payments compared to financing the same vehicle. You always drive a newer car around Ellicott City since you get a new lease every few years. Turning in the car at lease-end is easier than selling a used vehicle.
Which is Better for You?
In general, leasing makes more sense if you want to drive a new car every few years. Financing is better if you want to own your vehicle long-term. Carefully compare costs and terms before deciding which option to pursue for your Columbia commutes.
To get pre-approved for car financing, submit our easy online application. Then you'll save time when you visit Antwerpen Chevrolet near Frederick, MD.
Deciding between financing and leasing requires comparing your budget, ownership goals, and driving needs. Our financing experts at Antwerpen Chevrolet are here to explain all your options. Stop by our dealership or apply online now to get started.
Antwerpen Chevrolet serves car shoppers from Sykesville, Westminster, and other surrounding areas. Contact us today to learn more about financing or leasing your next new Chevy!