When it comes to choosing your next vehicle, one of the first decisions that you will have to make is whether leasing or a car loan is right for you. At Clayton Motors Inc., we serve Knoxville and beyond by helping drivers choose the financing option that suits their lifestyles and budgets best. The truth is that both a lease and loan are excellent options, but one may match your needs better than the other.

Explore the benefits of each type of financing to discover the option that is best for you.

Lease vs. Loan

Leasing Benefits

If you're looking to minimize your monthly payments and enjoy the latest models every two to three years, leasing may be right for you. Since the primary cost of a lease is the depreciation of the vehicle during your term, your monthly payments will be going towards a smaller sum than paying off the entire vehicle. With more flexibility in your budget, you may be able to afford more features and amenities.

Some of the top reasons to lease include:

  • Lower sales tax
  • Lower monthly payments
  • No need to find a buyer or get a fair trade-in value
  • Lower repair costs with the vehicle under warranty
  • Easily transition to a new car every two to three years

Benefits of Financing

Buying is an excellent way to take advantage of long-term savings and have more freedom in ownership. While the monthly payments may be high, you can modify your vehicle in any way that you choose and use its value towards your next purchase.

Some of the top benefits of buying include:

  • Modify your vehicle to match your needs
  • Build equity
  • Save money in the long run
  • No excess mileage penalties
  • Use the value towards your next vehicle

Get Started Today

Browse our new Volvo inventory to find the right match and complete our online finance application to get a head start on the buying process from home!

Categories: New Inventory, Finance