Leasing vs Financing A Car

Leasing vs Financing A Car (Pros and Cons)

There are a range of possibilities when it comes to leasing or financing a car. There are pros and cons to leasing and financing a vehicle, including monthly payment costs and ownership possibilities, and it really all depends on what you are looking for. Whether you decide to finance or lease a vehicle, there are several things to keep in mind about both options, and you should consider saving for a down payment beforehand. Learn more about the Leasing vs Financing opportunities available when you shop with Jack Demmer Lincoln of Dearborn, MI.

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Pros of Leasing a Car

There are many pros to leasing a car, and it’s important to understand the differences between leasing and financing. For starters, leasing a vehicle usually means you will be making lower monthly payments, which is beneficial in the short-term and can mean the difference in being able to afford to take home a car at all.

Lincoln drivers near Dearborn, MI, will find that another pro to leasing a vehicle is a shorter leasing contract, usually running for 24 to 40 months, which is significantly shorter than the average loan length of over 70 months. With a shorter leasing contract, you will have the chance to switch out the car you’re leasing at the end of the term, every few years, for a new model and the next best thing. Ultimately, leasing means you won’t have to make a long-term commitment to any vehicle and can walk away when the lease is up.

  • Lower monthly payments
  • Shorter leasing contract
  • Driving a new car every two or three years
  • No real commitment in the long-term
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Cons of Leasing A Car

There are also a couple different disadvantages to leasing a vehicle. Leasing a car has its cons, including not being able to own the vehicle once the leasing contract is up after the 24 to 40 month period. Although you will have put money into the car you’re leasing, including lower monthly payments, you won’t be able to walk away with ownership benefits. Lincoln drivers near Dearborn, MI, should understand that leasing a vehicle means putting money into something that isn’t going to last at the end of the day, unlike financing a vehicle which allows you to take home the car and keep driving it until the end of the road.

  • Payments have nothing to show at the end of the lease
  • No ownership benefits

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Cons of Leasing A Car

Pros of Financing a Car

Financing a car might be the best option for the average customer near Dearborn, MI, for a range of reasons. There are several pros to financing a car, compared to leasing, including being able to walk away owning a vehicle at the end of the contract and having the option to upgrade or customize your vehicle as you see fit.

When you finance a car with a traditional auto loan, you are able to build equity in that car and eventually own it when you make the final monthly payment. You’ll ultimately be saving more money at the end of the day, and you will have something to show for all of the monthly payments you make over the course of the on-average 70-month loan length.

  • Save money at the end of the loan contract
  • Ownership benefits, including customizing or upgrades
  • Trade-in options
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Cons of Financing a Car

Although there are many pros to financing a car, there are also a few cons to consider. For starters, financing a car and owning it at the end of the contract means you are responsible for all of the repairs, upgrades, etc., and you won’t be able to switch the model out at the end of the loan term for the newest option. If you decide you want to upgrade your car, you’ll have to get a trade-in estimate from a local dealership, and you will most likely be losing money since you’ve already paid off your financing plan. Customers near Dearborn, MI, will find that monthly payments for a financing plan are on average much higher than leasing, which is another disadvantage.

  • Higher monthly payments
  • Responsible for repairs, upgrades, etc., even after you pay the loan off
  • More work to trade-in or sell the vehicle
  • Won’t be able to easily switch your vehicle out for the latest model

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Cons of Financing a Car

Why buy from Jack Demmer Lincoln near Lyon Township, MI?

Jack Demmer Lincoln of Dearborn, MI, is a luxury Lincoln dealership. Here at Jack Demmer Lincoln, we are dedicated to providing high-end automotive servicing as well as quality products to customers in the surrounding areas. Whether you’re looking to get approved for an auto loan or lease on one of our new Lincoln models at our Finance Center, or you’re in need of servicing on your current Lincoln from our Service Center, Jack Demmer Lincoln has you covered. Check out our impressive New Lincoln Inventory to get started, or visit the dealership in Dearborn, MI, at any time.

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