Key Takeaways:

• Financing lets you own the car outright.
• Leasing enables you to use the vehicle for a specific time.
• Leasing has lower monthly payments than financing for the same kind of car.
• Some key considerations include monthly payments, the car’s depreciating value, and how long you plan on keeping the car.
• Your credit score is a big consideration when deciding whether to lease or finance your car. A good credit score lowers your interest rate if you finance a vehicle.
• If you think you might sell or trade in your car before it’s paid off, financing may not be your best option. With a leased car, you can turn it in and walk away at the end of your lease term.
• Both leasing and financing have benefits and drawbacks; deciding which option is right will depend on your circumstances.
• Jerry Ulm CDJR is a car dealership offering car financing services to customers in Clearwater, FL, and the surrounding areas.

Leasing or financing a car can be a big decision, but it doesn’t have to be complicated. Both options have benefits and detriments; deciding which is right for you can be challenging. To help make your decision a little easier, Jerry Ulm CDJR has put together a list of things to ask yourself when deciding between leasing and financing your car. So, what are you waiting for? Start thinking about your answers!

1. Do You Want To Own The Car Outright?

One of the benefits of financing a car is that, once the loan is paid off, you own the vehicle. If you lease, on the other hand, you will have to give it back at the end of your lease term.

2. Are You Looking For Lower Monthly Payments?

Monthly payments are typically lesser when leasing a car because you only pay for a portion of the car’s value. When financing, on the other hand, you’re responsible for the entire value of the vehicle.

3. Do You Want To Customize Your Ride?

If you finance, you can make any modifications or additions. When leasing a vehicle, however, you may be restricted in what you can do to the car since you don’t own it and will have to return it in good condition.

4. Do You Only Need A Car For A Short Time?

It allows you to change cars more frequently. Suppose your automobile requirement is only for a couple of years or less. In that case, leasing may be a better option than financing.

5. Are You Worried About Your Car’s Depreciating Value?

Car leasing removes the stress about the vehicle’s depreciating value since you’ll be returning it at the end of your lease. If you finance a car, however, you run the risk of it being worth less than what you paid for it if you decide to sell it or trade it in before it’s paid off.

6. Do You Like To Drive A New Car Every Few Years?

Leasing allows you to get a new car every few years. If you finance a vehicle, however, you will be stuck with the same car for the duration of your loan term.

7. Do You Have A Good Credit Score?

You need a good score (around 660-700, preferably) to qualify for a car loan. Leasing may be a better option if you don’t have a good credit score.

8. What Is Your Budget?

Leasing usually requires a lower upfront charge than financing, so leasing may be the better option if you’re on a tight budget. However, monthly payments tend to be lower when leasing, so consider that when making your decision.

9. Do You Mind Having An Older Car?

If you are fine driving an older car, leasing may be your better option. However, newer models will always be available to lease. Financing may be the better option if you prefer the latest car because they have a better resale value and won’t depreciate its worth as quickly as older models.

10. Would You Like Selling Or Trading In Your Car?

If you think you might sell or trade in your car before it’s paid off, financing may not be your best option. With a leased car, you can turn it in and walk away at the end of your lease term without going through the selling process hassle.

11. How Does The Insurance Involvement Work?

Because leasing companies want to ensure that their cars are fully insured in the case of an accident, they usually have a higher insurance rate. Although the minimum coverage levels won’t be as stringent, the finance firm will still demand insurance even when financing a car. Of course, you should always have adequate coverage to meet your requirements.

12. Am I Prepared For Unexpected Maintenance Expenses?

Standard warranties cover defective products from all auto manufacturers for new or certified vehicles. Furthermore, several dealerships provide paid maintenance contracts that include wear-and-tear items such as brakes, washers, and engine oil. Also, read our blog on maintaining radiator fluids to ensure your car doesn’t heat up on the road.

If you lease a vehicle, it may cover the whole term, in which case maintenance expenses may not have to be paid because these warranties and maintenance contracts are frequently for three or four years. You will have to be regular on the payment of these charges or performing necessary auto repairs if you decide to buy and maintain your vehicle after these agreements expire.

13. How Well Will I Maintain the Car’s Condition?

When you return a leased vehicle after three years, routine wear and tear, such as worn tires and wiper blades, is expected; anything more than that might result in a penalty. If you want to eliminate the strain of thinking about this option, purchasing a vehicle may be a better alternative.

14. Will I Be Working A Side Job With The Car?

If you want to establish a business or use a car to provide services like Uber, you are highly recommended to buy one. Leasing companies dislike this because corporate usage has restrictive rules in place. Even more significantly, working as a taxi might put you over your yearly mileage limit. It’s critical to consult with the leasing firm before using the vehicle for anything other than basic driving.

These are just a few questions when deciding between leasing vs. financing your car. Ultimately, the decision comes down to what’s best for your individual needs and financial situation.

Need Car Financing Services in Clearwater, FL? No Problem!

Are you checking your options for a new or used car? Do you need help financing those purchases? Look no further than Jerry Ulm CDJR serving Clearwater, FL. We have an exquisite inventory of CDJR vehicles from some of the top brands, and we can work with you to find an auto loan that fits your budget. See us today, and let us help you get into the car of your dreams.

For more information, you can get in touch with our finance department!