To lease or to finance? For many people, that is the question.  You have found the car you want, you've enjoyed the test drive and now it's time to figure out how you should pay for your new vehicle.


Financing is the most popular car payment option because it lets you borrow the money you need to cover a vehicle's full price. By choosing  this option, you slowly pay off the amount plus interest on a monthly basis. By opting for dealership financing, rather than a bank or credit union financing, you can benefit from related incentives. Some vehicles qualify for zero-per-cent financing is one of them, which is an offer to waive interest for a certain period of time.  When choosing the dealerships finance off the dealership has a vested interest in getting you approved on the load. If they can't get you approved the don't get to sell you the vehicle. Basically the dealership finance manager is working for you to get the loan so that you get the vehicle you want and the dealership get to make the sale. Car finance can be available even if you have poor credit. If you're trying to fix a less than stellar credit history, or if you're just starting out with credit, having a successful car finance agreement on your credit record is a very good thing.


If you would like the chance to drive a new car every few years then leasing might be exactly what you are looking for.  The leasing process is very similar to financing. Leasing does not require a down payment. However, unlike a loan, a lease does not require you to cover the full price. Instead, lenders ask you to cover the amount the vehicle will presumably lose as it depreciates. So, if your lease term is three years and the vehicle is predicted to be worth 40 per cent of its initial value by that point, then your deposit and monthly payments will have to cover only 60 per cent of the price. Because of this, lease payments tend to be lower than loan payments, which makes leasing a more affordable option. You also do not have to sell or trade in a vehicle once the lease is over. All you need to do is return the vehicle to the dealer and replace it with a the next vehicle you are interested in driving next. Leasing is ideal for people who want to be able to drive a new vehicle every few years.


If you pay cash, you may take a big bite out of your savings, and if a rainy day comes along, you could wind up in financial trouble. Paying cash is the easiest and most straight forward way of purchasing a vehicle. Paying cash can make it easier to sell your car if and when you choose to do so. Paying cash also means you won't have to make payments, which really helps your monthly budget. Another benefit when buying with cash is you can do whatever you like with your vehicle for as long as you'd like .