Should you lease a used car or finance it? Many people confuse finance and leasing. In reality, both terms are polar opposites. If you searched ‘used car financing near me,’ you must have learned that leasing is renting a car for a specific time. In car finance, banks/dealerships offer a vehicle to customers in installments and earn interest monthly.
Auto Trademark has been in the industry for 20 years. We guarantee 100% customer satisfaction. Today, we have outlined the significant differences between car financing and leasing for your ease.
In this case, a person rents a vehicle from banks/dealerships for a specific time and amount of money. The time can usually be up to 36 or 48 months. Moreover, certain restrictions are put on how many miles you drive and the modifications/ repairs you make to it. This term varies from financing because of some features:
The bank/dealership is the owner of the car.
At the end of the contract, the person who bought the car on lease has to return it in a reasonable condition.
Lower monthly costs: A lease can reduce the burden of monthly expenses. You are required to make small down payments.
A new car after a lease ends: Most individuals enjoy the feel of a brand-new car ride. When a lease is up, you can return the vehicle and purchase a new one. This allows you to be aware of car technological advances every few years.
We discussed the term used car financing above. However, in leasing, you receive the vehicle in installments. Therefore, it breaks down the cost of a car into monthly payments and interest. Moreover, you become the car owner from the day you finance it. After the contract ends, you claim ownership of the car.
Enhances your credit scores: If you make consistent payments on your loan, you can build a strong credit history. Similarly, it offsets your negative credit. If you have poor credit scores, Auto Trademark will assist you in finding cheap dealerships.
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