Deciding Between Car Leasing vs. Financing

 
For some North Canton drivers, deciding whether leasing vs. financing a vehicle is the best choice for their budgets and lifestyles can be difficult. Is it better to lease or finance? There’s no correct answer because it depends on your needs and situation. If you need to find out more about the difference between financing and leasing before you decide, the finance team at BMW of North Canton can help. We’ll go over the pros and cons of leasing and financing to help you decide how to acquire your new BMW.

Difference Between Financing and Leasing

The first step in deciding between leasing vs. financing is making sure you understand the difference between these options. Consider a lease as a long-term rental that lasts for a few years, depending on your lease terms. You will not take ownership of the vehicle when you lease, and you’ll have to adhere to mileage and damage restrictions, but you won’t. When you finance your car for your Green driving needs, you take out a loan to cover the cost of the car with the intent of owning it outright. You can keep the vehicle for as long as you like and sell it to whomever you want, whenever you want.

Pros and Cons of Leasing a Car

Pros:

• Lower Monthly Payments: Your lease payments are based on how much the vehicle will depreciate during the lease. This amount is almost always smaller than a monthly loan payment.
• Worry-Free Maintenance: Most leases last for three years, meaning your BMW will be under warranty the whole time. Any repairs caused by factory defects are covered.
• No Worries About Resale: You don’t have to deal with selling or trading your leased vehicle. Returning your lease is almost as easy as dropping your car off at BMW of North Canton.
• Get a New Car Every Few Years: Who doesn’t love a refresh every few years? A lease makes it much easier to get a new car in a couple of years, instead of driving the same car for a decade or more.

Cons:

• Mileage Requirements: Lease agreements almost always have mileage restrictions that lead to fines if you exceed them.
• Customization Restrictions: There are limits on what you can do to customize a leased car. It’s expected to be returned as it was when leased to you with only normal wear and tear. Damage or customizations can also lead to fines.

• Constant Monthly Payments: If you repeatedly lease vehicles, you’ll always have a monthly payment.

Pros and Cons of Buying a Car

Pros:

• Ownership: It’s your vehicle, and you can do with it whatever you like. You won’t have mileage or customization limits, and you can keep the vehicle for as long as you like.
• Customize Your Vehicles: You’re free to outfit your BMW as you wish. That includes everything from adding roof racks to slapping on the occasional bumper sticker.
• Return on Investment: When you lease a car, you’ll get money back when you sell it, or you can put its value towards another vehicle.

Cons:

• Higher Monthly Payments: Leasing a car means lower monthly payments for the same vehicle you might consider buying.
• Rapid Depreciation: New cars can lose between 15 percent and 50 percent of their total value in the first five years.
• Larger Down Payment: If you’re trying to get approved for a loan, you’ll have to consider making a larger down payment to do so. Leasing your vehicle will mean less chance of this occurring.

Lease or Finance a New BMW at BMW of North Canton Today!

Now that you’ve brushed up on the difference between financing and leasing a vehicle, do you know which is right for you? No matter which option suits your needs, apply for financing with BMW of North Canton. We can help you get the best possible financing or leasing interest rate available to you!