3 Scenarios in Which Leasing is Better than Financing a Car

June 22nd, 2018 by

Being able to afford a vehicle from new car dealers in Orland Park, Illinois is a big deal and getting access to a personal vehicle is often one of the first moves individuals make when they earn a promotion or start making more income.

Getting a vehicle, however, is not as easy as going to the store and picking up a phone or a laptop. Vehicles cost very large sums of money and there are not many people out there who can afford to buy their vehicle on cash. Most individuals opt to either lease or finance their new vehicle.

Financing one’s vehicle is ideal for individuals who want to purchase their car fully by the end of their agreement. Financing is also good for Individuals who have saved up a large down payment and for individuals who can afford to give extra cash each month on the interest they have to pay as well.

Leasing may not build up to the paying off of one’s automobile but it can be more beneficial than financing ones vehicle in a few different situations.

Frequent Switching

Individuals who need to switch their vehicle often can benefit greatly from leasing. When one leases a vehicle they don’t have to worry about what they will do with it when they get a new automobile. They simply have to hand the keys back to the company they leased it from and move on to the next vehicle. Drivers who like to keep driving the latest model on the market can take advantage of leasing agreements.

Financial Freedom

The monthly payments for a vehicle lease are not as large as the payments for financing a car. This is due to the extra interest that is charged to drivers who are financing their vehicle. Leasing does not involve any interest and can allow one to have some extra cash to spend or save during the month.

Immediate Access

Leasing also gives one immediate access to a vehicle without them having to actually save up for a down payment. This is great for individuals who have recently moved and need a vehicle as soon as possible for work or school.

It can often be quite frustrating to try and decide whether one wants to finance their vehicle or lease it. Financing is a good option for individuals who want their monthly payments to go towards paying off the total amount of the automobile. Leasing, on the other hand, is beneficial for individuals who switch their vehicle often, who do not have a lot of money on hand, and who need to get their hands on a personal vehicle as soon as possible.