Luxury Car Financing Tips: Loans vs. Leases

If you’re getting ready to buy or lease a luxury car, you may be wondering what the real differences are between the two options. Is taking out an auto loan really the best idea for you? Is leasing a good option considering your driving habits and needs?

At Lyon-Waugh Auto Group, we’ve sold and leased many luxury vehicles. We can help you figure out which will work best for you.

Benefits of Leases

Leases are a popular way of getting behind the wheel of a new luxury car for a few reasons. The first advantage of a lease is that monthly lease payments are often lower than monthly loan payments. Generally, you also won’t have to put down as much money upfront.

Lessees also don’t have to worry about depreciation. At the end of your lease, all you have to do is turn in your vehicle. Afterwards, you can upgrade to a new model, which also makes leasing great for drivers who love getting the latest tech features.

You can also buy your leased vehicle or extend the lease for a few months. It’s a flexible arrangement that many drivers appreciate.

Benefits of Loans

Opting for luxury car financing over a lease can be a good idea if you plan to keep your car for a long time. Once you pay off your loan, costs of ownership drop off significantly.

Taking out a loan also means that you’ll actually own your vehicle. This frees you from some of the limitations of a lease. For example, you can’t customize a leased car with performance parts or accessories. You also can’t drive a leased car too far each year without coming up on mileage limitations.

Visit one of our luxury car dealerships if you want to learn more about leases and car loans. We’ll help you figure out which method works best for you!

Posted in Finance | No Comments »