If you are unable to pay for a vehicle upfront, there are two options to consider for the average person. They include leasing the vehicle and financing the vehicle. Here at Good Fellow’s Auto Wholesalers, our team has gathered some common myths about car maintenance between leased and financed vehicles, and today we will let you know if they are true or false. Our used car dealership in Toronto hopes to clarify these myths so that you can make the right car payment option for your lifestyle.
Myth 1: Financing a Car Loan Makes Maintaining Payments Trickier
You might be surprised to know that this myth is true. Maintaining payments for a financed car may be trickier but that is not necessarily a bad thing. Lease agreements are more black and white in the sense that they are more set in stone and unchangeable. Although in the rare case you want to break a lease early, there will be a considerable termination fee which no one wants to pay.
Financing agreements on the other hand can be more flexible and can accommodate/adjust to different payment plans. Although this can be “trickier”, it can also be more convenient and helpful to the client trying to manage their credit. This is why finance payments are known to be “trickier”.
Myth 2: Financing a Car Loan Makes Maintaining a Car Harder
When leasing, one of the biggest advantages is that most car maintenance needs will be covered under the manufacturer’s warranty so you will not have to pay out of pocket. Although keeping your vehicle in excellent condition is a must when it comes to the term of your lease.
Financing on the other hand means you own the car, so as problems arise, you will be paying for the repairs. You would be surprised to know that this myth is false as financing may take money out of your pocket, but at least you can repair your car on your own terms.
Myth 3: Leasing a Car Makes Maintaining Mileage Harder
This myth is known to be true. This is because when you decide to lease a car, there is a firm contract you have to meet in terms of mileage. These tight restrictions on the mileage make them difficult to adjust because vendors don’t want high mileage as that can decrease the value of the car further. Whereas when you finance, maintaining the mileage is completely up to you.
When financing, you own the vehicle, and it’s up to you how much you want to drive it. If you plan on driving long distances frequently, it’s recommended to choose the financing route.
How We Can Help
If you would like to know all of your car financing options, our team at Good Fellow’s Auto Wholesalers would be happy to provide you with all the information you need to know to make your decision. We hope this article on myths was a good introduction to help you understand your car loan solutions. If you would like to get more information or to ask our team your questions, you can reach us at 1 (855) 581-9590 today.