Financing vs. Leasing

June 18th, 2017 by

Financing

If you’re eager to get change what you currently drive around Jacksonville and St. Augustine and get behind the wheel of something new, there is a massive inventory of vehicles waiting for you at Nimnicht Chevrolet. If and when you’re ready to close the deal, the two most common options are to financing and leasing. Use this quick pros and cons guide to make the right choice for your situation.

Financing

When you finance a vehicle, you take out a loan for the full purchase price and then pay off the loan plus interest by making structured monthly payments.

Pros

  • Once the loan is paid off, you own the vehicle outright.

  • You are free to make any changes to the vehicle you want.

  • Drivers are free to travel as many miles as they want and sell the vehicle at anytime.

Cons

  • You pay a higher down payment and monthly payments.

  • The cost of maintenance is higher.

  • Drivers must deal with selling or trading in the vehicle.

Lease

When you lease a vehicle, you basically rent it for several years and pay a monthly fee for the privilege.

Pros

  • The down payment and monthly payments are typically lower.

  • You get to change what you drive after just several years.

  • The cost of maintenance and repairs is usually covered by a warranty.

Cons

  • You never own the vehicle, and a low credit score may exclude some drivers.

  • There are limits placed on your mileage, and you are responsible for any wear or tear.

  • If you leave a lease agreement early there can be significant penalties.

Should You Finance or Lease?

The answer to that will be different for every driver in Orange Park. If you are budget conscious or like to change your vehicle more frequently, definitely consider leasing. If you drive a lot or place heavy demands on your vehicle, applying for financing is probably a better choice. At Nimnicht Chevrolet, we make both options easy, and our friendly staff is happy to help you explore the details. If you have any questions, please contact us.