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Exploring Your Options: Leasing vs. Financing a Vehicle

When you decide to upgrade your vehicle, there are tons of decisions to make. Between choosing models and trims and colors, the choices can seem overwhelming! But, there is one major decision that deserves a lot of thought: Leasing vs. financing a vehicle. There are plenty of pros and cons to either alternative, but we're here to help you find the right choice for you. Read on for an in-depth comparison between leasing vs. financing. Once you've made your decision, don't forget to contact CashMax if you need a personal loan for your new ride!

Leasing a Vehicle

Leasing a vehicle is a shorter-term investment with a lot of flexibility. When you lease a vehicle, you get to enjoy the latest and greatest vehicles without the large price tag. That's because leases only cover the depreciation during the lease term, as well as rent charges, taxes, and fees. That can add up to a major discount for those on a budget. And when your lease is up, you have options:

  • Hand the vehicle back and pick up something brand new.
  • Buy your vehicle from the dealership.

However, leasing can be a bit more challenging in some aspects. For example, you typically will have mileage limits of around 12,000 to 12,250 miles per year. Go over your allotted miles and you'll face a fee. That means high-mileage commuters may want to consider financing a vehicle instead. Also, early termination fees can be incredibly expensive, so read your contract carefully.

Financing a Vehicle

Buying a vehicle is a longer-term investment, but it can add up to big savings over time. Though loan payments are often higher than lease payments, you will eventually pay off your loan and the car will be 100 percent yours. Also, you have a bit more freedom when you finance a vehicle. You can sell or customize your vehicle at any time without worry, and you can feel free to drive as much as you'd like.

Financing a vehicle has its downsides as well. The costs tend to be higher up front, including down payments and monthly costs. You also have to think about depreciation when buying a new model. However, the savings over time may be worthwhile if you stick with your car for a long period.

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