What Are the Benefits of Leasing Over Financing?

Posted: Thursday, May 26th, 2016

If you’re planning to add a new car to your garage, you’re probably considering whether leasing or financing will be the better choice for your needs and budget. An auto loan and an auto lease both require monthly payments, and both get you a new or used car, but beyond that there are some major differences. While both options offer both pros and cons, you’ll want to read on to understand how these solutions differ.

The Advantages of Leasing a Car:

Leasing has some distinct advantages that should make it appealing to some buyers – and those same advantages might make it less appealing to others. Here are some of the major attractions to leasing:

  • Leasing is less expensive month to month than financing. A lease payment will almost always be lower than an auto loan payment.
  • There is usually little or no down payment required to lease a new or used car.
  • You will always be driving a late-model car when you lease.
  • You can usually drive a nicer, more expensive car, than you might be able to afford to purchase otherwise.

Those are relatively attractive perks to leasing.

The Advantage of Auto Loans

An auto loan also has many advantages that might make financing more attractive than leasing. Here are some of the major benefits:

  • You get to keep the car when you reach the end of your loan term if you’ve paid off the loan in full.
  • Financing a car is generally less expensive overall because of lower financing charges.
  • You have unlimited mileage and unlimited control over what you do with your car. In a lease you need to return it essentially the same, and you have a yearly mileage limit.
  • You can always sell your car when you purchase it – with a lease, you would have to return your vehicle to the dealer, and likely be stuck with early termination fees and penalties.

Let Green Light Auto Credit Help

We offer exceptional financing rates for car shoppers, and that should make purchasing a used car even more appealing. We’re happy to help you arrange the financing solution that works for your needs.

Find the Financing You Need at Green Light Auto Credit

Contact Green Light Auto Credit online now or give us a call at (800) 200-5551 with any questions about our financing offers today. Our skilled financial representatives would love to help you determine whether leasing or financing is the better option for you.