Know the Difference Between Leasing and Buying

Most people say that they know the difference between leasing something and buying it, but they really might not know as much as they say that they do.

1169964 car door handle Know the Difference Between Leasing and BuyingWhen you buy a car it belongs to you (or you and the finance company, if you didn’t pay cash for it). When you lease a car, you’re essentially renting it for an extended period of time. You’ve got to put a deposit down on it (like a down payment when you buy), and you pay every month (just like when you finance).

At the end of the lease term you give the car back. It’s not yours, and it never was. Sometimes you can buy the car when your lease is up, but most people just trade it in for another leased car. You can’t make any modifications to the car and you have a limited number of miles that you can put on it. If you put too many miles on it you have to pay extra for those miles. You also have to be careful of any damage done to the car, because you can lose the deposit that you put down on it and/or have to pay out extra money.

If you’re leasing, the car you’re driving will never really belong to you.

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