Is it better to Lease, Finance or Buy?
The three options presented each have their own pros and cons. What’s important to understand is that everyone has a unique financial situation and will have a payment scheme that will suit them best. Make sure that you choose the option that’s most in-line with your current financial status.
In the long run, directly buying a car will save you more money since you won’t need to pay any interest rate fees – however, it comes with the obvious drawback of having to pay a huge amount upfront.
Leasing a car is a good option for people who don’t plan to own the car for a long time. Since leases are shorter and usually cover only a portion of the car’s value, people who don’t want to have long-term ownership of the vehicle can save money as long as they abide by the restrictions. Leases usually employ a stricter monthly payment scheme.
Finally, financing a car is the best option for people who are looking for flexibility in their deal. Getting a car loan from a bank or dealership you trust will often mean that you can negotiate things like the interest rate, length of the loan, and frequency of payments. You will sometimes also have the freedom to pay the full amount and end the car loan early.
— Ask me! Approval Guy