Car Buying: Finance vs Lease

What to Expect

When presented with that must-have vehicle, there are certain decisions to make. Deciding upon trims and relative equipment, exterior and interior color are all part of the car-buying experience. And of course is that underpinning detail of financial solvency. While local Latrobe shoppers may not be investment bankers or other finance professional, there are differences to financing and leasing that must be understood.

Either way, our automotive group in general and in-house finance team specifically have been tasked to illuminate the variations to each method of acquisition. As a shopper, you're then provided with options that work within your budget and what's ahead in terms of forward thinking and planning. We want to apprise our customers of all the details before making your choice between financing and leasing.

Advantages to Leasing

Leasing is a preferred option for those shoppers with excellent credit, retirees and drivers who wish to absolve themselves of maintenance costs. Most lease agreements offers complimentary basic service given the dealership remains the actual owner of the vehicle in-question. And to this, a lease agreement will likely last between 36- and 72-months. And given you're essentially paying off depreciation, monthly payments are lower than with financing. A current vehicle to trade or large down payment will continue to lower any monthly payment looking ahead.

And when your lease agreement nears maturity, there are lease-end options to exercise unlike when financing. You may purchase the leased vehicle at a pro-rated cost, lease another new model or simply walk away without any responsibility attached. Many shoppers prefer to lease given they can drive a new vehicle every three years or so. Though there will be yearly mileage parameters to mind. So, if you travel only locally, leasing is an approach perfect.