Each individual’s needs provide the answer to auto lease vs purchase. When it comes to purchasing a car, it all depends on the borrower’s priorities. Leases and loans come with their positive points and negative ones.
Car Lease Financing and Auto Loans
There are a few major differences between the car financing and auto loan. In the case of car lease financing, the borrower is paying for the vehicle depreciation during the lease term. In case you purchase the car, you are paying for the cost of the car alone. This is one reason why you can obtain lower monthly payment on car lease financing than on auto purchase loans. The financing charges are included in the lease payment. You also pay interest on the money, which has been tied up for the car by the leasing company.
In the case of auto purchase loan, your payments are towards depreciation and interest as well as equity. Once the auto loan has been paid off, you can resell your vehicle and regain the equity. However, in the case of a car lease, the car is handed back to the dealer with you getting nothing.
Learn more about car lease financing and auto loans at My Car Loan Online. Our auto loans can be obtained by borrowers with good credit, bad credit or even bankruptcy. Apply today!