Is Leasing My New Car a Better Option Than Buying?
Financing and leasing a vehicle are two different processes. Although they give the customer the same access to the automobile, leasing and auto loans serve opposite purposes.
Those who are taking out an auto loan to pay for a car are working their way towards the ownership of that vehicle. Their monthly payments are based on the interest rate that is applied to the overall loan, and also the amount of money the consumer is able to put down. The larger the down payment, the lower the monthly rates will be.
Leases are priced based on the usage of the automobile. A lease contract normally has lower monthly payments than an auto loan. Lessees are not responsible to a lender for the cost of payments. The customer can simply return the vehicle at the end of the contract.