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Financial Tips

Good Cents Money Tips

Buying vs. Leasing a Car

When you are looking for a new car, there are two options – buying and leasing.

Buying a car comes with a higher monthly payment, but you own the vehicle at the end of the loan. Leasing a car means a lower monthly payment, but at the end of your lease, you turn in the vehicle (or you can buy it, but we’ll get to that later!).

So what are the advantages? Both get you a new vehicle. Both will let you take advantage of the perks of buying a new vehicle, like a warranty, and sometimes even scheduled maintenance included for the first year.

When you purchase a vehicle with a conventional auto loan, your monthly payment will be higher.

Because of this, you may not be able to afford the vehicle you really want and may need to cut back on things such as higher trim packages and leather seats. But when you pay off that loan, you own the car. It’s yours to drive as much or as little as you want. If an auto loan is right for you, Solidarity has you covered! Check out our up-to-date auto loans here.

On the other hand, leasing a vehicle is another way to get behind the wheel of a new car. When you lease a vehicle, you make a monthly payment to drive that new car for a set number of months (typically 24-36 months). Leasing also comes with a few stipulations, like a set number of miles you are allowed to put on the car, and a damage clause. At the end of that lease term, you have two options – turn in the vehicle, or purchase it.

If you lease a vehicle and fall in love, you can purchase that vehicle at the end of your lease term.

You will purchase the car for the amount that’s left of the original leased price. That can be done one of two ways – by writing a check for the whole amount or getting an auto loan to cover it. When you purchase your leased vehicle, you will need a used car loan. Solidarity has you covered, there, too! Check out our used car loans here.

No matter what you decide, Solidarity is here for you. Whether you buy a new car, a used car, or even your own lease, Solidarity has a loan option for you.

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