Leasing vs. Financing Your Next BMW

When it comes to paying for your next Audi vehicle, there are three main ways to do it. The least common way is to buy it outright, paying the entire balance on the spot. That’s self-explanatory, so we’re going to focus on comparing the two most common methods: financing and leasing.

The biggest difference between the two methods is that with financing, you are making payments towards ownership of the car. With leasing, you are essentially renting it for a period of time, typically three years, after which you have a few options. There are pros and cons to each, so here is a quick breakdown.

Leasing from Audi West County

By leasing an Audi, you aren’t tied into a long-term commitment. The monthly payments you make over the course of the lease are generally much lower than finance payments. At the end of the term, the lessee can decide to roll over into the latest model year of the same vehicle, try a different vehicle, convert the lease into a loan, or turn in the vehicle in and walk away.

With a lease, it’s important to remember that the lessee is not the owner of the vehicle. The downside is you’re not paying into equity, but the upside is you’re not affected by depreciation. Lease warranties also mean you are typically not on the hook for repairs during the lease term.

All leases have mileage limits (3 years/36,000 miles, for example) and penalties for exceeding the allocation. So, you should consider your needs and driving habits carefully, as the mileage restriction may not be equitable with your needs.

Financing from Audi West County

Audi’s are great vehicles, engineered to deliver a satisfying and rewarding ownership experience that lasts for many years. With that in mind, many people opt for the longer-term commitment of Audi financing. Unlike leasing, you do pay into equity, as the car is yours at the end of the term. However, payments are often higher than a lease, depreciation will affect you, and, after the initial warranty has elapsed, repairs become your responsibility

Because the vehicle is yours, you can modify it to your hearts content and there are zero mileage restrictions.

If you have any questions about finance options and special offers, feel free to reach out to Audi West County, online or by phone at your convenience. We’ll be happy to assist you.

Categories: Finance
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