FAQ About Questions to Ask When Buying a Car

Whether to finance or lease a car depends on your personal circumstances, financial goals, and preferences. Here are some factors to consider when deciding between financing or leasing a car:

Financing:

• Ownership: Financing allows you to own the car outright once you complete the loan payments. You can keep the car as long as you want, modify it, and sell it at any time.
• Equity: As you make loan payments, you build equity in the car, which can be beneficial if you plan to sell or trade it in the future.
• Mileage and customization: Financing typically doesn't come with mileage restrictions, allowing you to drive the car as much as you want. You can also customize the car according to your preferences.
• Cost: Monthly loan payments tend to be higher compared to lease payments, as you're paying off the full purchase price of the car.
• Long-term savings: While financing may result in higher monthly payments, once the loan is paid off, you'll have a car with no further monthly payments, potentially saving money in the long run.

Leasing:

• Lower monthly payments: Lease payments are generally lower than loan payments since you're only paying for the depreciation and use of the vehicle during the lease term.
• Newer cars: Leasing allows you to drive a newer car with the latest features and technology more frequently, as lease terms are usually shorter (typically 2-4 years).
• Warranty coverage: Most lease terms align with the manufacturer's warranty, providing coverage for repairs and maintenance during the lease period.
• Limited mileage: Leases often come with mileage restrictions, typically between 10,000 to 15,000 miles per year. Exceeding the mileage limit can result in additional charges.
• No equity: Since you don't own the car, you don't build equity or have the option to sell it for profit in the future.
• Excess wear and tear charges: When returning a leased car, you may be responsible for excess wear and tear charges if the car doesn't meet the specified condition guidelines.