Lease or Loan? What is the best option in your case

You need to get a car? Not too sure about getting a car loan, or a car lease? Not familiar with these concepts? Here are some tips from LexpressCars.

How does a car loan work?

The idea is simple: you need money to buy something, in this case, a vehicle. You borrow the money from a bank, and repay your loan over a specific number of years, usually not more than 7 years for a car loan.

And what is a lease?

The concept is different. You agree on a leasing contract, and pay an amount every month, for a certain number of years, usually not more than 7 years as well. At the end of this period, you do not own the vehicle, but give it back, and you can start a new lease again with a new car.

Then what is the best option?

We cannot give you a real clear cut answer to this, as needs vary from person to person, and from one period of your life, to another. We can however make a quick list of the basics for each option.

Pros and cons of a loan

+ You would like to keep your vehicle for a long time ? At the end of the repayment cycle, the car is all yours !

+ When you get a loan, you buy the vehicle, and you can « pimp your ride », and tune it to your taste.

+ Once your car is paid, you are free to sell it and buy another car if you need.

– The loan usually does not cover the full amount of the vehicle cost, usually only up to 70%.

– Car loans can take a few weeks to be approved, and they can include some extra processing fees.

Pros and cons of a lease

+ Ideal if you like to drive new vehicles. Once you reach the end of the lease, you get a new car, and start off another lease agreement with another new vehicle.

+ With new vehicles, you will most probably have the warranty which will take the burden of paying car repairs off from your shoulders.

+ There is a quick approval and processing time. Generally speaking, it’s a done deal in 48 hrs!

– You will never be the real owner of the car (Unless you pay off the remaining balance at the end of  the lease agreement).

– If there are any scratches or dents when you give back the vehicle at the end of the lease agreement, that will not be good for you!

So here you go! Choose your suitable car on Lexpresscars, and follow the instructions on how to get your car financed on our website ! Good luck, and enjoy the ride!