When a person “decides” to buy a new car, another option—car lease—is often offered by the sales representative together with its benefits. In 2020, during the coronavirus pandemic, a notable increase in car lease and reasons could be because of community lockdowns and major backlash in the economy.
But people who also get cars through leasing tend to forget that after the lease term, the car needs to be returned to the manufacturer.
To know the difference of these two terms, take a look at this information:
The Monthly Payments
While cars acquired through leasing may be less expensive because upfront taxes are already included in the monthly lease payment, cars acquired through car loans can only have low monthly payments when a big down payment is made upon the deal. Another difference that these monthly payments may have is when a leased car exceeds the mileage limit, additional fees may reflect.
Car “Ownership”
The difference between a leased car and a loaned car is also present when payment of terms reaches its end. A person who loaned a car comes to fully own it after finishing the car loan payment, while a person who got a car through leasing does not fully own the car as the manufacturer still has a hold on it.
Buy and Sell
New car dealerships in San Diego have flexible lease terms. One of them is when a lease term expires, the leased car only needs to be returned by the lease and look for a new car to lease. There will be no need for the person to worry about reselling it and find a fair trade. While when a person fully owns a car, it becomes an asset that can be sold at a higher price when customizations and maintenance are regularly done.
Know more about car buying and leasing through this infographic.
