Before deciding whether you should take your car on lease or buy it with financing, it is important to understand the pros and cons involved. We take a look at the positives and negatives involved in getting car finance vs. car lease.

1. Pros of car financing
When you buy a car with funds from a financing company, the advantages include:

• You can buy a new car of your choice, even if you do not have the cash for it. All you need to do is make a down payment and get the rest of the money as a loan.
• When you take a car on financing, the ownership of the car is with you. It will be on lien with the financing company until you repay the loan.
• Since the car is yours, you have the freedom to do what you want. You can make any customization to the car that you desire.
• Since you own the car, you have the option to sell it. If you cannot repay the loan, you can choose to sell the car. After you repay the loan, you can sell it anytime and buy a new car of your choice.

2. Cons of car financing
There are quite a few issues one can face when it comes to car financing, such as:

• The monthly amount you pay includes repayment of loan amount and the interest. When you compare car finance vs. car lease, the monthly expense in financing is more. The interest you pay will be significantly high.
• Once the warranty period of the car expires, all repairs have to be paid by you.
• You need to pay a down payment before you can get a car with financing.

3. Pros of car lease
The advantages of leasing a car include:

• You can get to drive the best car of your choice that you may not have the money to buy. All you need to do is pay a monthly rent.
• The lease duration is usually for 1 or 2 years. Once the duration is over, you can return the car and take the latest model on lease. It allows you to drive the latest models of cars, and also you get to drive the car during the initial period when there are no problems.
• You have the advantage of warranty protection. You are protected from the costs involved in fixing any problems. It is a major plus when it comes to car leasing.
• Finally, you have the option of buying the car once the lease period is over.

4. Cons of car lease

• You never own the car, it belongs to the leasing firm. Also, you would not be allowed to make any changes to or customize the car.
• There are mileage limits in leasing. If you drive above that limit, you would be charged more.
• If you don’t maintain the car well, you need to pay for the wear and tear at the time of returning the car.

The pros and cons presented in this article, regarding car finance vs. car lease would have provided sufficient information about getting a car on lease or through financing. It would help you evaluate both options and decide which one you need to choose to get your new car.