When it comes to getting a car, there are two main options available to the consumer; financing or leasing. Deciding which option is best for you depends on a few things, so here is a breakdown of a few myths regarding car maintenance when it comes to leasing vs financing.
Many people think that payments are trickier when financing a car, but that’s not necessarily the case. There are more options when it comes to payment plans when financing, but that doesn’t mean that it’s tricky. When leasing a car, you must make monthly payments towards the car which you do not own. The payments include interest and taxes and are generally higher than financing rates because there is a premium incorporated into it which covers car maintenance and repairs. Once a payment plan has been determined, there is no room for flexibility on the customer’s end and they are expected to pay a set amount every month for the duration of the lease.
Financing, on the other hand, differs in that the customer actually owns the car and is not required to return it. Financing provides customers with more options and a lot more freedom when it comes to payments because it is their property, which means they are able to make adjustments to the payment plan should they need to. This can make it trickier because you have more options and can extend your term to decrease your monthly payments or shorten your term if you want to make higher monthly payments. It’s not set in stone the way leasing is but that doesn’t make it trickier, it simply provides you with more choices.
Another myth is that maintaining a car is harder when you’re financing a loan. This is not true. When you finance, the car is yours and any maintenance or repairs are your responsibility. This means you can do it on your own terms and at your convenience depending on the situation. You call the shots and can decide when and where the problem gets fixed. This makes things a lot easier when compared to leasing because you don’t have to worry about your car being in perfect condition. When leasing, although maintenance is covered, you have to constantly worry about messes, stains and dirt so that it doesn’t become a problem when you return the car.
Lastly, if you think maintaining mileage is harder when leasing a car, you are right because there are restrictions and you must follow the terms that were agreed upon when signing your contract. There is always a mileage limit when you lease a car, whereas financing allows you to do whatever you want because the car is yours.
Canada Wide Vehicle Finance in Winnipeg can help with all of your vehicle needs; whether it’s a loan, appraisal or financing. Don’t let bad credit stop you because they will work with you to get you the car loan you need!