A common question we often get from our customers here at McLarty Volvo Cars is whether to lease or finance their new Volvo. Like these folks, you may wonder which option makes the most financial sense. Both buying and leasing offer advantages, and there's no right or wrong answer for everyone. The key is to consider your personal circumstances and to understand the basics of automotive financing options.
What to Know About Financing
You're probably most familiar with conventional auto financing. This involves securing a loan for the purchase of your new vehicle. When you choose this route, you'll be given a pre-determined amount of time to pay off the total cost of your vehicle plus fees and interest, minus your down payment.
You'll make monthly payments until the loan is paid in full. This is a great option for those who hope to eventually own their new Volvo outright once the payments are completed. This is also the ideal option for individuals who put a lot of miles on their cars.
How Leasing Works
When you sign a lease, you'll be agreeing to pay a monthly fee that essentially covers the depreciation of the vehicle while it's in your hands. When the lease term is up, usually in about three years, you'll return the vehicle. You get to drive a brand-new vehicle in its most maintenance-free years. You'll also pay a significantly lower monthly payment than you would to buy the same car.
Meet with Our Finance Team
We hope this overview has given you an understanding of which finance option might work best for you. Our finance team is always happy to discuss your unique situation. You can either call our showroom or stop in to see us in Little Rock. If you decide to buy or lease a new Volvo, you can submit your finance application on our website.
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