The difference between leasing and financing

Although there are some similarities between leasing and buying a vehicle, there are some notable differences; if you opt to buy your next vehicle, you will be financing the entire cost, which typically translates to a higher monthly payment. When leasing a vehicle, however, you’re only responsible for the depreciation value, which is relative to the length of the lease.

While leasing a vehicle may sound like a much more attractive proposition, there are some limitations regarding mileage and wear and tear on the vehicle. For example, if you exceed the annual mileage restriction on the vehicle, you will be subject to penalties. Additionally, if there is more than moderate wear and tear on the vehicle, you will be penalized for that as well. When buying a vehicle, you obviously don't have the restrictions associated with a lease agreement, mileage, or wear and tear, but the financing cost could be greater. If you would like more information, feel free to visit our dealership and speak with our friendly staff.

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