The Pros & Cons of Leasing
Balloon auto financing is a smarter, more cost-efficient alternative to leasing. We'll explain why as we describe the pros and cons of leasing.
As we explain the benefits of leasing, you'll see that balloon auto financing can also offer the very same things. Basically, balloon auto financing offers you the best aspects of both leasing and conventional auto loans. Here are some of the main reasons why people lease:
- Lower down payments
- Lower monthly payments
- Easy closure-just return car to dealership instead of having to sell or trade in
Pitfalls of Leasing
With leasing, you sometimes end up facing the very hassles you were trying to avoid in the first place. Remember that leasing is analogous to renting an apartment or home-when your lease is up, you own nothing. Leasing can also be very restrictive, as dealers impose conservative mileage limits on most leases. Here are some of the main pitfalls of leasing:
- You will always have a car payment. Someone who chooses balloon auto financing or a conventional loan can look forward to the day when he/she can drive the car without having to make a monthly payment. However, with a lease, you will always have this burden.
- You face exorbitant fees if you exceed the mileage restrictions. You shouldn't have to restrict your activities because of mileage caps on a lease. However, you might end up doing so because dealers usually charge an arm and a leg if you exceed the restrictions.
- You don't build equity. At the end of the lease, you don't own anything.
Balloon Auto Financing vs. Leasing
Balloon auto financing can offer all of the aforementioned benefits of leasing, but better. Here's how balloon auto financing stacks up against leasing:
- No down payment - leasing will require some down payment
- Lower monthly payments - payments are as low if not lower than those of a lease
- Quick closure - just like with a lease, you have the option of returning the car to the dealership. But, unlike with a lease, you can also sell, trade, or keep the car
If you have any questions, please check out our Frequently Asked Questions page.
You can get low montly payments and pay $0 down with balloon auto financing.