The time has come to make that first big financial purchase of your adult life–and no, we aren’t talking about that bucket list trip to Europe.
Buying a car, even a used one, is a major financial investment that requires careful consideration—and a substantial budget. The zeros following your favorite Land Rover model can feel like a nightmare on wheels. After all, how are you ever going to pay for that in full?
The great news is, you don’t have to, thanks to car financing.
What is Car Financing?
Financing a car means that you are purchasing a vehicle with money that has been loaned to you, whether that be from a bank, credit union, or our in-house financing department located right on our car lot. As is the case with other types of loans, you agree to repay the loan over a set period, typically paying the initial sum along with interest and other fees.
Depending on your financial situation or pre-determined budget, you can choose to finance the full cost of the vehicle or make a down payment and finance the remainder.
Once you and your loan provider determine the amount, you make monthly payments over a set period, and voilà! You are on your way to full ownership of your new ride!
Difference Between Leasing and Financing a Car: Is There One?
It’s not uncommon for the terms “leasing” and “financing” a vehicle to be used interchangeably.
It is, however, misleading.
When you choose to finance a vehicle, you borrow funds to help pay for it over time. By the end of the loan term, the vehicle is officially yours!
When you lease a vehicle, however, you are opting to rent it for a set period instead of owning it outright. While you are still making monthly payments, you will return the vehicle to our dealership at the end of your lease term.
Think of financing a car like home ownership and leasing like renting an apartment–only one results in you walking away with full ownership.
To Lease or Finance a Car…That is the Question
Choosing to lease or to finance your new Land Rover will depend on several factors, like budget, maintenance costs, and ownership.
Low Monthly Payments? Choose to Lease
If your budget for a new vehicle is a bit tight, leasing may be the perfect solution. When you rent a car, your monthly payments are typically lower than if you were to finance your vehicle, since you are not purchasing the vehicle.
Want to Terminate Early? Choose to Finance
If, for any reason, you want to terminate your lease agreement early, you will be subject to a substantial termination fee. However, if you are financing and want to sell or trade in your vehicle, you won’t be subject to additional fees or charges. You can sell or trade whenever you feel like it.
Freedom to Drive? Choose to Finance
Are you an adventurer who enjoys traveling off the beaten path on the weekends? A leased vehicle may cut your trip short. With a car lease, mileage restrictions of between 10,000 and 15,000 are typical. If you exceed the limit, you will have to pay a mileage penalty fee at the end of your lease term.
If you prefer the freedom to drive where and how far you see fit, financing may be the best option.
No Maintenance Costs? Choose to Lease
Maintaining your vehicle can be expensive. From worn brake pads to transmission failure, keeping your car on the road and out of the service department can leave you with little in your wallet…if you choose to finance.
For those who want to enjoy driving without the hassle or stress of repair, leasing a car may be the way to go. When you lease a car, our dealership is responsible for all maintenance and repair costs under the warranty, meaning we foot the bill and you can keep your pockets full and your car on the road with ease and confidence.
Equity and Ownership? Choose to Finance
When you finance your car, each monthly payment moves you closer to full ownership, giving you the power to do with it what you want. Even with financing, you still build equity in your car over time. When you lease a vehicle, you never build equity, nor do you gain ownership of the vehicle–you just rent it for a time and then return it.
Don’t Pay the Full Amount Up Front–Discuss Our Land Rover Finance Offers With Us Today!
Choosing to lease or finance your vehicle is a major decision, and one our finance department can help with.
At Land Rover Livermore, our in-house finance center can help you weigh the pros and cons of leasing versus financing a vehicle, enabling you to decide which option best suits your specific needs and goals. We offer ongoing Land Rover finance specials and offers, helping you stay true to your budget while achieving your long-term car ownership goals.
As the leading Defender, Discovery, and Range Rover Dealer near Oakland, our team is here to help make your dreams come true without the stress or worry.
Schedule a visit with our Land Rover Livermore Finance Department today to help navigate automobile financing and find out how you can get behind the wheel of your favorite Land Rover vehicles today!
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Finance