When it’s time to start shopping for a new car, it’s time to consider Jeep® financing options. We are comparing loans vs. leases at Ourisman Chrysler Dodge Jeep RAM of Bowie to help you determine which route is best for you.
How Does a Loan Work?
When you purchase a vehicle, you must pay the total investment before you leave the lot. Of course, that isn’t possible for so many car buyers. That’s where financing comes in.
By financing a vehicle, you get a lending institution to cover the cost and you pay off the loan to them instead. Your loan is paid in monthly installments over a predetermined term. It includes interest, which is a direct fee to the lender.
How Does a Lease Work?
Similar to a loan, leasing a vehicle involves paying monthly payments over a predetermined term. However, when leasing, you are essentially borrowing the vehicle from our dealership.
So, by only having the vehicle a set time (typically two to three years), you are paying for the value of the vehicle during that period. That allows you to lease a vehicle much more affordably than financing or buying one.
Which is Better?
Each option certainly has its perks. It truly depends on your needs and your plans for the vehicle. Do you enjoy consistently trading up your vehicle to newer models and technology? Are you shopping with a limited budget? Leasing may be the best fit for you.
Interested in living without a car payment one day? Want to build up equity in your car? Then, you should consider buying.
Our Jeep dealership in Bowie, MD can help you secure a loan or lease, whichever you prefer! Still undecided? Come chat with our financial experts – we’re happy to help!