Auto Blog

 What is financing?

When you finance a car, you're essentially borrowing money from a lender to buy the vehicle. You'll make monthly payments to the lender over a set period of time, and at the end of the loan term, you'll own the car outright.

What is leasing?

When you lease a car, you're essentially renting it from the dealership. You'll make monthly payments to the dealership for a set period of time, and at the end of the lease term, you'll have the option to buy the car, return it to the dealership, or lease a new vehicle.

Of course, there are also some drawbacks to leasing:

• Mileage restrictions: As mentioned above, leases typically have mileage restrictions. If you exceed the mileage limit, you'll be charged for each additional mile.
• No equity: At the end of a lease, you'll have no equity in the car. This means that you won't be able to sell the car or trade it in for a new one.
• Lease termination fees: If you decide to terminate your lease early, you may be charged a fee.

Ultimately, the decision of whether to finance or lease a car is a personal one. There is no right or wrong answer, and the best option for you will depend on your individual circumstances and needs.