Should You Lease or Finance a Car Near Wichita, KS

At Parks Motors, our customers regularly ask us which is better – the car lease or financing in Wichita, KS. If you are looking to get behind the wheel of a new vehicle, you must understand the differences.

Benefits of Leasing a Car

Leasing a car allows you to basically rent it for a few years. The vehicle is not yours and will be traded in for a newer model in just a few years. The benefits of leasing include:

• Smaller down payment
• Lower monthly payments
• No need to sell the vehicle
• Repairs covered by warranty

Benefits of Financing a Car

If you choose to finance the car, it can eventually be yours. Once the loan is paid off, you can do whatever you want with this vehicle. Additional benefits to car financing include:

• Ability to modify car
• No fees or mileage limits
• Can sell car any time after it is paid off

Things to Consider: Lease vs. Finance

As you decide whether a lease or financing agreement is right for you, consider these factors.

• Monthly payment: If you want the lowest payments possible, leasing is your best choice.
• Down payment: The lease requires less money down.
• Car insurance: With either option, you’ll likely need full coverage.
• Repairs: Most leased cars remain under warranty for the period of the agreement. However, financing a car means there could be a time when it is no longer covered under warranty.
• Depreciation: Cars go down in value the more you drive them. However, leases put mileage limits on the vehicle, and you will pay the penalty if you go over these terms.
• Leasing fees: There are additional fees included when you lease. You might have to pay an acquisition fee, security deposit, early termination fee and disposition fee.
• Flexibility: If you don’t want to be locked into a certain vehicle for the next five years, a lease might be best for you.

Talk to our helpful staff to figure out if a lease or finance arrangement is best for you in Wichita, KS.