There are two basic ways to get a car: buy or lease. Many car shoppers prefer to finance their vehicle, but more and more drivers are leasing due to the benefits of this option. So what's the difference? Read on to learn more.
You can buy a car in cash, but most people finance their vehicle. This involves a large down payment (about 10 to 20 percent of the sticker price) and a lender. The lender can be a bank or the dealership, which will lend you money and let you pay it off over a few years. After you finish payments, you get the title. Buying is great for those who have some money saved and are looking for a long-term investment.
Leasing is much like renting. You may pay little to nothing down, and you have small monthly payments. After your lease expires (often two or three years), you can renew it or get a new car. Leasing is great for those on a fixed income because the monthly payments are usually less. If you're looking for a sports car or luxury vehicle that was a bit out of your price range, leasing can make your dream car a reality thanks to lower costs. The only downside to leasing is that you don't get to keep the car and there may be mileage restrictions.
These are just the major differences between leasing and buying. If you're in the market for a new car, stop by Morristown Ford. We can help you find financing or get you set up with a new lease - whatever you're looking for, we've got it.