Herb Chambers Alfa Romeo of Boston Explains the Difference Between Financing and Leasing

As you shop for a vehicle at Herb Chambers Alfa Romeo of Boston, you should be asking yourself some questions pertaining to financing. For instance, would you prefer long-term or short-term ownership? Figuring out what your needs are, you can determine the best method of obtaining your desired model. To help you determine which approach will suit you best, we have outlined the differences of financing and leasing below.

Financing VS. Leasing

When you choose to buy a vehicle, you are essentially claiming ownership. That is to say, the car will be yours to keep and do with as you please after the final payment is made. To cover the costs, most car buyers take out an auto loan. Rates tend to be higher so you will have to pay more up-front, but in exchange, you will see greater savings in the long run. In fact, buying a car is in many ways an investment because you can always sell it for money or trade-it for a newer model at a later date.

When you choose to lease a vehicle, you are signing up for a contract with the dealer. In other words, the model is technically still the property of the dealer, and you will therefore be required to uphold certain rules such as staying on top of regular maintenance. If you break the terms of the agreement, you may be subject to penalty fees. However, the overall cost of leasing a car is much more affordable because monthly payment rates are much lower. Thus, you will see savings immediately.

Buying a car is ultimately a better option for drivers who know exactly what they want to own, but if you are not yet sure of the vehicle you want to keep, then you may want to consider leasing instead. Doing so will give you the chance to try out different options at intervals of a few years until you find a ride that satisfies you.

Speak with an Herb Chambers Alfa Romeo of Boston Financial Advisor

If you would like a one-on-one consultation to determine whether buying or leasing is a better choice for your lifestyle and budget, then we recommend you set up an appointment with our Finance Center in Boston, Massachusetts. Just contact us online or by phone! Our advisors will see to it that you get a new Alfa Romeo or used car from our dealership without a hassle.

Categories: Finance
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