What Is the Difference Between Car Leasing and Finance?

The cost of acquiring a car is high for most prospective car buyers. It is so prohibitive that manufacturers consider it the most significant prohibitive factor in their sales. As such, we at Brown Honda have tried to develop more customer-friendly ways of transferring ownership of the cars we sell.

For you as a buyer without ready cash, there are two options available to you if you want to own a car. You can either finance or lease the vehicle of your dream. What are the differences between finance and leasing? Read along for a detailed analysis to find out which method is suitable for you.

What Is Car Leasing Vs. Buying?

Leasing allows you to possess the car (not owning) for a certain period of fixed time. You pay an agreed fee at regular intervals for the entire time until the specified period's expiry. At the expiry of the term, you can choose to do one of the following:

• Give the car back to the owner
• Renew the leasing contract
• Buy the car

Finance refers to applying for a loan from a lending institution such as a credit union, bank, or other finance agency. You then use the loan to purchase the car from a dealer. As an alternative to bank loans, we at Brown Honda can offer to midwife a finance contract with a lender on your behalf. We have helped so many car buyers in Maumee for a long time now.

More about Car Lease

The leasing contract will have no problem as long as you can return the car in the same condition in the end. Also, you have to commit to not using the vehicle beyond a specific limit. On the contrary, you may extend the use after paying for an extension of the contract.

Moreover, you do not benefit from accrued equity attached to the car over time. In case the car experiences tear and wear, the customer meets the cost of repair. Besides, you have no freedom to modify or customize the car in any way.

About Finance

While the car's value may depreciate with time after you have acquired it, you retain the rights to equity. The car belongs to you since you have bought it fully. As such, there are no restrictions on how you can use the vehicle, and you can even resell it if you want.

The downside may be that you cannot prevent the resale value from falling gradually. However, this may not be a significant issue of concern as long as you use the car well. We at Brown Honda advise our customers in Toledo to take good care of the vehicles we sell or lease to them.

Benefits of Car Leasing and Finance

Everyone may want to own their car fully without any limitations. The problem is that sometimes you may not have enough money to buy a car at once. Also, the convenience of leasing may outweigh finance in some situations.

Benefits of Leasing Cars:

• You do not lose a warranty for your car as long as it is on lease
• Drivers get a technical exemption from sales tax.
• The installments are not as high as you would pay in a finance arrangement.
• You can change the car as soon as a newer version arrives on the market.
• We at Brown Honda accept trade-ins from drivers who have leased our vehicles.

Benefits of Car Finance:

• You can sell the car if you want.
• The process of financing is more straightforward than leasing. Our dealership makes it easier for our drivers.
• You only need to pay off the loan, and the car is entirely yours.

We at Brown Honda are excited to receive and advise you. Once you opt for either leasing or finance, book a test drive, and we will gladly facilitate you. You will surely get the car of your dream when you visit us at Brown Honda in Toledo, OH.