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Okay, so we’ve narrowed down the “right option”, or at least a couple of choices. We also discussed what makes up a budget and some of the most common factors considered in determining your budget range. These will help provide you with a strong game plan and give you confidence in the vehicles you’ve chosen. Now let’s look at how we can apply the budget. It’s been an age-old struggle for many years over which is the better choice, lease or finance. I’m sure you have friends or family members that have a very vocal opinion on this topic. They’ve told you their story about how they had a horrible experience in dealing with their payment choice, and they were probably right. The reality is that in the past both options have had their less than reputable moments. And like with most things, the industry has since learned from and grown away from these issues. Laws and regulations have been set into place to protect you, the consumer. With that said, you can have peace of mind knowing that whichever educated method of payment you choose, there won’t be any surprises in store for later.

 

The BIG Debate, Lease vs. Finance

First let’s start with the common factors in both options:

  • Currently, both methods require little to no money down. Using money down, however, can help you to reduce your payment. If you have a strict budget, this can be useful. There are also some special circumstances involving credit that can change this factor.
  • You have the flexibility to choose if you want to exchange any vehicle with both methods, and can choose to payoff or buyout any vehicle with the intention to own it free and clear.
  • Either option helps to provide a steady payment that’s easy to budget for and makes it very cost effective to protect your investment while you’re making the payments. This is great because it provides you with peace of mind and confidence in the choice you made.

Leasing and Financing each have pros and cons, and how you feel about these may help guide your decision on which route to take. Here are a few more factors to consider when deciding between leasing and financing:

Leasing

  • You can drive a more expensive car for less money.
  • You can drive a new car with the latest technology every few years.
  • A great option for anyone whose lifestyle might change.
  • Almost no repair costs as the vehicle will have a full factory warranty.
  • There are no trade-in hassles at the end of the lease.
  • You only pay for the time & taxes that you are leasing the vehicle for and not the entire MSRP.
  • In the event of an accident, leased vehicles carry GAP protection to help save you money. (Click here to learn more)

Financing

  • You can opt for a longer term.
  • This type of loan approval can be easier depending on the bank.
  • You can modify the vehicle to your tastes.
  • At the end of the loan there’s no buyout amounts if you choose to own the vehicle.
  • There are no mileage limitations if you drive a lot.
  • This is a great option for anyone who plans to own their vehicle long term.

Next entry we’ll tackle what age of vehicle you’re considering. Are you thinking of new or used? Thank you for reading and we hope it was helpful.