If you’re in the market for a new car, you might be wondering whether it’s better to buy or lease. For most people, the answer is simple: financing is the way to go. Here are six reasons why financing your next car is the best option.
1. You’ll own the car at the end of the loan.
This is probably the biggest advantage of financing a car. Once you’ve made your last payment, the car is yours to do as you please. You can sell it, trade it in, or keep it until it falls apart.
2. You can build equity in the car.
If you finance a car and make all of your payments on time, you’ll actually end up owning more than the car is worth by the time you pay it off. That equity can come in handy if you ever need to borrow money or want to trade in your old car for a new one.
3. You can get a lower interest rate.
If you have good credit, you can usually qualify for a lower interest rate when you finance a car than if you lease one. That means your monthly payments will be lower, and you’ll save money over the life of the loan. Be sure to check out what the loan-to-value ratio is to get the lowest possible rate on your new vehicle.
4. You have more options at the end of the loan.
When your loan ends, you can either keep driving your car or sell it and use the money as a down payment on another one. If you lease, on the other hand, you’ll have to give the car back to the dealership with nothing to show for it except for a few thousand miles on its odometer.
5. You can customize your car however you want.
If you finance a car, you can add aftermarket parts or make other modifications without worrying about violating the terms of your lease agreement.
6. You won’t have to worry about mileage restrictions
Leasing companies typically charge extra if you go over a certain number of miles per year, but that’s not an issue when you finance a car since it’s yours to drive as much as you want.
So there you have it—six great reasons why financing a car is generally better than leasing one. Of course, there are some exceptions (like if you’re sure you’ll only need the car for two or three years), but for most people, financing is going to be the best option. So start shopping around for that new ride today!