Lease or Finance? That’s the Question

Unlike the general population of women– I love cars and the fulfillment of driving. I have a deep interest in cars, not in a functional way but in an aesthetically pleasing, features and performance kind of way. I would attend car shows with my father which is where I adopted the love of cars from. Every since my first car I have either owned outright or financed my vehicle. As I grew older my preference changed and I noticed that I fit into the category of an “early adopter” in the things I acquired. When a vehicle body would change I also wanted to change my car to fit with the new body-type. That’s when I realized financing wasn’t ideal for

If you’re in the market for a new car or thinking of getting another car it’s important to know which option is best for you; lease or finance.12423132-equipment-leasing-rpmgonline
Typically most automobile owners are financed drivers; the percentage of new vehicles purchased through financing has increased to 84% in 2014 according to The Fiscal Times. Financing is the option that most dealerships expects you to take. With a finance you select the terms; and the longer the terms aka years of payment and the amount of the down payment the lower the monthly payment will be. At the end of the payment terms of a financed vehicle the car is your’s and you can obtain the title to do with the car as you please. An ideal person who finances a car is someone who plans to drive this car for many years, a person who is not concerned about the current shapes, styles and features of other cars on the market; this person just wants a reliable car that at some point they won’t have payments for. If you fit in this category then you should finance. Dajhun Jones, dealer at Ultimate Auto Care in Fort Lauderdale FL. instructs, when shopping for a car plan to not buy the car the same day. This may sound perplexing if you know you qualify for a car and you’re ready to buy but your patience will pay off! The dealership will wait a few days and give you a call to see if you’re still interested in the purchase and at this time is where you have the upper hand because you can negotiate different rates and features within the vehicle for them to produce a sale. For example, “Yes, I am still interested but I was hoping for an extended warranty and you only offer a 5 year warranty”… 

On the other hand, a lease is for a person who likes to switch it up. In a lease you get a brand new car and keep it for about two-three years then return the car for a new one. However, with leases there are some nuances; with a lease you are restricted to a certain amount of miles per year, so this type of vehicle purchase would be ideal for a person who works close to home—as to not exceed the mileage. The reason for this is once it’s time to return said vehicle back to the dealership, they plan to sell this car as a pre-owned vehicle to someone else and needs the mileage to be low enough to make a substantial profit.  Additionally, there’s a loop hole in leasing a vehicle that most people don’t know and the dealership doesn’t tell you about. You may change your mind and decide at the end of the lease that instead of returning the car, you can actually buy it out for what is it worth! so just like a financed car at the end of the term you can also own a leased vehicle.

Personally, in addition to changing cars often what I like about leases is that they have the most attractive incentives. Just like financing, with leases you need to have a down payment; however, with leases it’s more credit contingent. Key from car and the calculator on money.

Dealerships are expecting the customer to have a base credit score or higher to qualify. Having a good credit score and being aware of it will increase your buying power prior to visiting a dealership and gives you more leverage with the dealer. A great resource that I use to keep track of my credit and monitoring is IdentityForce which protects your Identity, Privacy and Credit – Start your FREE trial now


A good credit score is imperative to both leased and financed vehicles. In a financed vehicle if you have good credit and a stable employment history you can get a car–depending on the cost with no money down! I’ve experienced this personally and there’s no better buying feeling. Now absorb all this new knowledge and use it for when you’re ready to ride off in a new whip! Skeert, Skeert! speeding



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