Everyone has that one car that they have always dreamed of driving. For some, it's a classic muscle car from the 60s or 70s. For others, it's the latest and greatest supercar from Ferrari or Lamborghini. No matter what your dream car is, there's no reason why you can't make it a reality sooner than you think! The key is knowing whether to lease or finance your dream car. Here are some things you should know.
There are two main ways to get your hands on the steering wheel of your dream car: leasing or financing. Both have their pros and cons, so it's important to weigh all your options before making a decision. Here's a quick rundown of each option:
When it comes to car insurance, there are a few things to keep in mind if you're leasing vs. financing a car.
If you're financing a car, the lender will often require that you have full coverage car insurance. This type of insurance covers damage to your car from events like accidents, weather, theft, and more. If you’re worried about the high cost of full coverage insurance, then you can look into cars that are the cheapest to insure to keep your costs lower.
If you're leasing a car, you will need Fully comprehensive, which covers damage to other people and property but not your own car. However, be sure to check with your leasing company to see what their requirements are. In some cases, they may specify that you need additional coverage.
When you lease a car, you're essentially renting it from a funder for a set period of time. The big advantage of leasing is that you can get a brand-new car every few years without having to deal with the hassle and expense of selling your old one. You'll also have lower monthly payments than if you were to buy the same car outright.
However, there are a few things to keep in mind when you're leasing a car.
Pros: Lower monthly payments, no need to worry about selling the car when you're done with it, and you can trade in for a new car every few years.
Cons: You don't own the car outright, strict mileage limits, must keep the car in good condition.
When it comes to financing a car, there are a few different options to consider:
Each option has its own set of pros and cons, so it's important to do your research before making a decision. If you're looking for the lowest possible interest rate, then taking out an auto loan from a bank or credit union is probably your best bet.
However, keep in mind that this could involve going through a lengthy approval process. If you're pressed for time and need to get your new car fast, then financing through the dealership might be a better option. Just be aware that dealer-financed loans often come with higher interest rates than bank loans.
Of course, if you have the cash on hand to pay for the car outright, then that's always an option as well. The main advantage of paying in cash is that you won't have to worry about making monthly loan payments.
However, depending on how much you're planning to spend on your new car, this could mean tying up a large amount of money that you might need for other purposes.
Ultimately, the best way to finance your new car will depend on your individual circumstances. By doing your research and exploring all of your options, you'll be able to choose the path that's right for you.
Pros: You own the car outright, no mileage limits, can sell the car whenever you want.
Cons: Need to worry about selling the car when you're done with it.
So, which option should you choose? Ultimately, it comes down to personal preference and your financial situation. If you're looking for lower monthly payments and don't mind not owning the car outright, leasing is probably the way to go.
However, if you want to own your dream car and have the freedom to do whatever you want with it, financing is probably the better option. Whichever route you choose, we hope you enjoy driving your dream car!