What is car leasing?
Leasing is a form of financing when you don't want to keep the car for longer than a few years. You pay on the depreciation of the car over the term of the lease and a down payment at signing.
Once your contract is up, the car goes back, at which point you will need to lease or buy a new car.
Consider leasing a car if you:
- Enjoy driving a new car every few years
- Want a lower monthly auto payment
- Expect your transportation needs to change within a year or two
- Drive 15,000 miles a year or less
What should I know about buying or financing a car?
If you intend to keep the car for many years, financing may be a better choice.
You pay the entire negotiated price of the vehicle using cash, financing, the value of your trade-in, or a combination of all three.
Consider buying a car if you:
- Plan to own the vehicle for more than five years
- Plan to continue driving the vehicle after it's paid off and you enjoy the freedom of no car payments
- Will likely drive your vehicle more than 15,000 miles per year
- Enjoy customizing your car or truck
Helpful articles on the car buying process
This article offers helpful tips for your research in finding the right financing options for you.
Ask yourself these five questions before you sit down with your car dealer or banker.
Deciding on how you will finance your car is a major step in the car buying process. Here are some tips to make it easier to find the right one for you.