Should I Lease or Finance? Which is Best for You

February 8th, 2019 by

Woman signing financial form

When you’re in the market for a new vehicle, one of the first things you’ll have to decide is whether you want to lease or finance. Each of these options has its own set of benefits, but which is the right option will depend entirely on the individual. Today in the Thompson Sales blog, we’ll talk about which one would be the best option for you.

What Is Leasing?

Leasing is when you make payments on the depreciation of a car through the term of your lease, but you’re not paying for the car itself. Therefore, when you’re leasing a car, you won’t own it at the end of your lease. What are the benefits of leasing? Some of the benefits include:

  • Lower monthly payments
  • Most repairs and maintenance covered by warranty
  • Easy to get a new car every few years
  • Don’t have to sell your vehicle

However, leasing does come with its share of downsides too. For one, when you lease a car, you won’t end up owning it. This means you can’t customize it or upgrade it either. Also, lease contracts have stipulations like mileage limits. This means you have to pay fees if you go over a certain number of miles or if there’s excessive wear and tear.

What Is Financing?

Most people are probably more familiar with financing. When you finance a car, your payments are going toward owning it. Here are some of the benefits of buying your vehicle:

  • Owning an asset
  • No mileage limits
  • You can customize and upgrade your vehicle
  • Trade-in or sale value when you decide to get a new car
  • No monthly payments once the vehicle is paid off

Most of the time, financing is the more attractive option because you eventually own a financial asset. But there are a few downsides. For one, your monthly payments will likely be higher than leasing the same vehicle. Also, you’ll need to pay for any repairs and maintenance yourself once the warranty runs out. However, the benefits of owning an asset can’t be understated. Although you may pay more over the term of your contract, those costs are greatly offset when you consider the money you’ll get from selling your vehicle.

Choose Thompson Sales

Whether you’re financing or leasing, buying used or new, Thompson Sales can help you. We have a wide selection, a friendly and knowledgeable staff, and even an auto shop for your maintenance needs. Contact us today for more information or come on in and see what we have available on our lot. 

Posted in Financial