What’s the Difference Between Leasing and Financing?

Discovering Which Method is Best for You

What’s the Difference Between Leasing and Financing?

Which is Right for You?

When you’re in the market for a new vehicle, one of the questions that your salesperson will ask you is whether you want to lease or finance your new car. Many drivers may gravitate toward one method of ownership without ever realizing the incredible benefits of the other. Dive in with us as we cover the pros and cons of leasing vs. financing a vehicle and help you determine which method of ownership is right for you. Whichever you choose, be sure to choose South Motors INFINITI, and maximize the benefits and savings available to you.

The Basics of Financing

The concept of financing a vehicle is simple: you take the purchase price, plus any extras like taxes and extended warranties, and you split this total cost over a period of months.

Car loans are also very flexible, allowing you to pay your vehicle off quickly in a short period of time, or stretching out over a period of years so that drivers can enjoy a comfortable car payment. Once the car loan is paid off, the vehicle is yours to keep, and you’re free to do whatever you want with it.

Financing a vehicle also means that you’re free to customize your vehicle, and drive it as many miles as you want, however, that may hurt the resale value; which brings us to the cons of financing a vehicle. A new car can lose up to 60% of its value within the first five years of service. This sometimes means that in the first few months, your car is worth less than what you owe on your auto loan. This is referred to as being “upside down”. However, this doesn’t last forever, and after a while, you’ll enjoy positive equity toward your vehicle.

The final downside of financing a vehicle is that your vehicle’s warranty doesn’t last forever. Once its warranty expires, you’ll have to fit the bill for any necessary repairs.

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The Rundown on Leasing

One of the main benefits of leasing a car vs financing a car is the ability to drive your dream car at a lower cost than if you were to finance the same vehicle. A vehicle lease is the act of driving a car for a few years and paying the depreciation plus a nominal finance fee. Because of this, leasing a new vehicle can even be cheaper than financing a used vehicle.

Another one of the benefits of leasing vs financing a used car is that a leased vehicle will likely be under its manufacturer’s warranty for the entirety of your lease term. This means that you’ll never have to worry about expensive repairs.

If you use your vehicle for work purposes, leasing even has distinct tax benefits that allow you to maximize your savings when you file your taxes.

Though leasing is a great way to drive the car of your dreams at a lower price, leasing isn’t for everyone. Because your lease payments are calculated on pre-determined depreciation, each lease comes with a mileage limit. While these terms are often flexible, if you drive more than 12,000 miles per year, you may find yourself paying excess mileage fees when you return your vehicle at the end of your lease term. This same principle applies to excess wear and tear, as well as vehicle customization. If you’re hard on your vehicles or you like to customize them, you’ll find yourself with additional fees for not returning the vehicle in like-new condition


Get Your New INFINITI Today

Now that we’ve covered the pros and cons of leasing vs financing a car, it’s time for you to experience the savings here at our INFINITI dealer.

At South Motors INFINITI, we feature an abundance of vehicles for you to choose from. Whether you choose to lease or finance, we feature a brilliant finance department who works directly with INFINITI Finance, along with a network of other finance professionals so you never have to shop for a competitive interest rate. We not only offer exclusive savings, but also honor national specials, so you never have to search high and low for tempting offers.

Whether you wish to lease or buy a car, trust South Motors INFINITI to get you on the road with an incredible deal.

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