Leasing vs financing a vehicle: Things to consider
Whether you are planning to get a vehicle on lease or finance, there are many things that you need to keep in mind before you go ahead. This article looks at the differences between financing and leasing a vehicle to understand the things to consider before making a decision. Leasing vs financing When we consider leasing vs financing a vehicle, we need to first understand the basics. Leasing involves taking a vehicle on lease for a duration of a few years. Every month you have to pay the lease amount and use the car. There are restrictions on how much you can use the car. At the end of the lease period, you can return the car and take a new car on lease. Financing is buying a car by taking a loan. You take a loan from a lender and repay every month by paying a repayment amount. The repayment amount includes the loan amount and interest. You will need to keep making payments until the loan is cleared. There are a few things you need to consider before deciding if you want to lease or buy a vehicle on financing. You need to keep these considerations in mind to help you make a proper decision.