Pros and Cons of Financing
When you finance your new car, truck, or SUV you make monthly payments towards and will own it outright at the end of your term. If you plan on putting lots of miles of your new car or modifying it in any way, then this is the option for you. The table below highlights the pros and cons of financing a new car.
Pros of Financing | Cons of Financing |
- You will own your car at the end of your term
- No mileage restrictions
- You may modify your vehicle as you see fit
- You will build equity
| - Monthly payments are typically higher than they are with lease agreements
- You are responsible for any repairs that are outside of warranty
- New cars depreciate immediately upon leaving the lot
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Pros and Cons of Leasing
A lease agreement allows you to drive a new car, crossover, or SUV while you make payments toward its depreciation. While there are more limitations on a lease deal, there are several serious benefits that make it a lucrative option for many car buyers.
Pros of Leasing | Cons of Leasing |
- You can get a new vehicle every few years
- Your monthly payments will often be lower than financing
- You may be able to afford a nicer model or trim level when you lease
| - Mileage restrictions
- You must ensure your vehicle stays in acceptable condition
- You cannot modify your vehicle
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AdChoices