The Difference between Leasing and Financing

Looking for new Dodge cars for sale? At Hillview Motors, we have a large inventory of new and used models to browse and test drive. Check out the 2019 RAM 1500 or the 2019 Jeep® Renegade or view our used cars near Greensburg, PA. When you’re ready to drive a car off the lot, our professionals will help you with either financing or leasing your new vehicle. However, some Hillview Motors customers have had trouble understanding the difference.

Leasing versus Financing

When you apply for a car loan, you’re applying for what’s commonly called financing. Your credit score is pulled and you agree to pay a set monthly amount for a certain time period with an annual interest rate. When the loan period ends and the car is paid off, you own the car. This is the best option for people who want to be car owners and have a car they can drive for years to come.

A car lease is for newer models and is essentially a type of rental agreement. You pay a monthly rate for a set period of time, just like with a loan, but at the end of the lease period, you return the car back to the dealership. In some instances, you have the option to buy the vehicle at that point as well.

Going the leasing route is better for car shoppers who like to have a new car every few years and enjoy all the latest technology. Often, the monthly lease payment will be less than a car loan payment for a new car.

Our Greensburg Jeep dealers are ready to help walk you through the financing or leasing process. Visit our RAM dealership today to get started.