Leasing or financing?!

Leasing – long-term cheap rental of a new car! The car doesn’t belong to you, BUT! you have the right to buy it out after the lease term ends or to take it on credit.

Loan – buying a car for ownership using borrowed funds at interest (from 0 to 30%). Many mistakenly believe that, when financing the car, it is their property. This is theoretically true. In practice, it becomes your property only after the loan is paid in full. You also pay interest, which is hidden under the word “money factor”. By multiplying the monetary factor by 2400, you will receive a % for using the money.


Advantages of leasing:

  • Always a new car
  • Guaranteed for the entire lease term
  • The monthly payment amount is less than with financing
  • You do not lose anything if the car has an accident during operation.
  • If you additionally charge an insurer for wear and tear, which costs about $ 20 per month. You don’t worry about anything at all (scratches, chipped, bald rubber, and other damage – up to $5000-$7500 – when the car is returned). There is also a convenient insurance for the wheels – free replacement of the tires and discs in case of damage during operation


Cons of leasing:

– Limited mileage, from 7,500 to 15,000 miles per year. Additional miles in some manufacturers can be purchased or paid for shipping (from $ 0.15 to $ 3 per mile, depending on the car brand)

In fact, everything is quite simple:

  • A new car, in 90% of cases, is more profitable to lease. You driving a while, you liked it, and you bought it! If you didn’t like it, there was an accident, you hand it back and take another one!
  • Finance for a new car must be good if you have high mileage. To understand what is more profitable, you need to calculate the cost of car ownership per month … But that’s another story!


If you’re interested feel free to contact me!

Free professional advice on buying, leasing, and financing new and used cars! Wholesale prices for all cars! From Toyota to Bentley!

I do not pretend to be 100% right – this is just my opinion based on experience! Therefore, be sure to write comments if you disagree with something or have something to add!