For many years, just two options existed when it came time to pay for a new vehicle: Buy it outright with cash or finance it with monthly payments. 


But there’s a third option: Leasing. Leasing has become so popular that around 30 percent of all new vehicles on the road today are leased. So is leasing also for you? Below we’ll take a look at financing vs. leasing so you can make an informed decision about your next purchase. 

Know Your Options: Financing vs. Leasing

The case for financing

Financing a car comes with some advantages. Namely:

  • You’ll build a little equity in your vehicle with each payment that you make. Although cars depreciate in value over time, you’ll still be able to get a little cash for your car one day when you are ready to replace it or can use its value as trade-in credit.
  • You can drive it as much as you want. Lease agreements typically come with mileage restrictions whereas a financed car is yours to drive all you want. 
  • You can customize a financed car with a new paint job, accessories, decals, and more. A leased vehicle offers less freedom in this department because you’ll have to return it to the dealer at the end of the term. 
  • One day your payments will end with a financed car. You’ll own the vehicle outright and have no more payments to make on your car. A leased vehicle comes with payments every month. 
  • You can sell a financed car at any time, even if you still owe money on it. But a leased vehicle carries more restrictions about trading or turning it in early. 

The case for leasing

While financing a vehicle certainly has its benefits, so too does leasing. These include:

  • Leasing is generally more affordable than financing. Because you’re paying for the depreciation of the car, your payments with a lease typically remain lower than those of a financed vehicle.
  • Leasing also typically requires a smaller down payment than a financed vehicle, and sometimes no down payment at all. 
  • Leasing means you can trade in your set of wheels every few years, making it easy to upgrade to a higher trim level, newer model or from a sedan to an SUV. 
  • Always being behind the wheel of a newer car means having access to the very latest in safety and infotainment technology. 
  • One of the big advantages of a leased vehicle is that you will typically always be driving a car that is protected under the manufacturer’s warranty and maintenance and roadside assistance coverage.

Should You Finance or Lease?

As you can see, there are advantages to both financing and leasing. So which one is right for you? Speak to our financing department about which payment method is right for you and discuss the loan and lease options available right here at MINI of Madison. You can even use our online payment calculator to estimate your monthly payments and assist in your shopping experience.  


Visit us today to learn how you can get behind the wheel of a new or used MINI Cooper.