When you head to one of the best Boise used car dealers, you probably intend on coming home in a new or new-to-you vehicle. You pick it out, take it for a test drive, and decide it’s the one. But there’s one more decision: will you finance or lease the car? Each has its pros and cons, so it’s essential to know the difference. Here’s what you need to know.
How Does Financing Work?
While buying a car outright with cash is possible, this is fairly uncommon. Instead, most people will finance a car when they buy from one of the best Nampa used car dealers. This means purchasing it with a loan and paying it off over time. The car is legally yours when you have finished paying off the loan, but until then, the lender owns the title. Typically, you’ll put forward a down payment and finance the rest. You’ll pay monthly payments to the principal and interest, and once the loan is paid off, the car is yours.
What Are the Benefits of Financing?
There are a few distinct benefits of financing a vehicle purchase. For starters, the car is 100% yours once the loan is paid off. During that time, you can do whatever you want with the car, and you could trade it in for newer Boise used trucks and cars or just keep driving it well into the future. There’s no mileage limit, meaning no restrictions or fees, and you can put as many miles on the car as you want even while paying off the loan. If you value ownership and plan to keep the car for many years, financing might be for you.
The Drawbacks of Financing
There is a price for financing a car, which typically means paying more monthly compared to leasing. You might want to consider leasing instead of financing if you have a tight budget. This could also limit your options when financing, as it’s more expensive. You are also responsible for all maintenance costs. Make sure to have a budget for any surprises in the future, especially if you’re buying a used car.
What Does It Mean to Lease a Car?
When you lease a car, you get to drive it for a specific length of time, usually two or three years, and you make an upfront payment. This covers the fees and taxes of the vehicle. Then, you pay a monthly fee over the life of the lease term. These payments tend to be lower than most loan terms. Once the lease period ends, you can return the vehicle and lease another car or purchase the leased vehicle.
What Are the Benefits of Leasing?
The biggest benefit is lower monthly payments. Most leased vehicles also have a bumper-to-bumper warranty, so you may only be responsible maintenance. The warranty often covers most of the cost of unexpected repairs. Plus, you always get to drive a new vehicle every few years, meaning you can enjoy the latest features.
The Downsides of Leasing
Most leases have mileage restrictions, usually between 10,000 and 15,000 miles per year. Exceeding this means paying a fee when you return the car. This is usually between 10 and 25 cents per mile over the limit. You will also have to pay wear and tear fees for scratches, scrapes, dings, or tears to the interior or exterior of the vehicle. Ending leases early will likely incur a large fee, and leasing can be expensive over time. You are essentially renting cars long-term. You also don’t own the car, and once the lease is finished, you’ll need to find a new vehicle.
There are pros and cons to both financing and leasing, and one may be better for you than the other. Visit a trusted local dealership to review your options and learn more.
About DENNIS DILLON
For more than 48 years, DENNIS DILLON has been one of the Treasure Valley’s premier automotive groups for new and used cars. The auto group caters to surrounding communities, like Boise, Eagle, Caldwell, Meridian, and Nampa, and the greater Treasure Valley. The DENNIS DILLON team has a single goal: to offer customers a fair price on quality vehicles. From a new Jeep or GMC to some of the best Boise used cars, the DENNIS DILLON commitment ensures you have a fantastic car-buying experience. Their team is committed to helping you every step of the way, from the test drive to final purchase and delivery. Visit your local DENNIS DILLON dealer for a better car-buying experience.
Experience easy financing with DENNIS DILLON at https://www.dennisdillon.com/
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