MAZDA Finance 101: Loans vs. Leases

Area drivers can learn everything they want to know about Mazda finance by contacting or visiting our Mazda financing center. One of the most common questions our resident finance experts encounter is about the difference between car loans vs. leases. We invite you to contact Middletown Mazda to see whether leasing or financing a vehicle is the smarter move for you

How Leasing Differs from Financing

Unless you’re paying cash for one of our new Mazda vehicles, you’ll need to choose between leasing or taking out a loan. When you lease a car, you’re basically entering into a long-term rental agreement. While your contract remains in force, you’ll make monthly lease payments. At the end of your lease agreement, you’ll have several options, including buying out your leased car or returning it to our Middletown, NY, Mazda dealership.

Even if they have the money on hand, many drivers opt to finance a vehicle when they decide to purchase one. By doing so, they can keep their emergency reserves intact and have funds available for alternative investments. Whereas the average lease remains in force for 36 months, car loans have terms that range from 24 to 96 months. Once you pay off your loan, you’ll own your automobile outright and you can keep it for however long you choose.

A smiling woman sitting in the driver’s seat of a white car listens to a sales consultant in a blue suit, who is showing her vehicle features on a tablet at Middletown Mazda.

Handing over car keys during vehicle purchase at Middletown Mazda.

Which Is the Better Choice for Me?

There isn’t a concrete rule of thumb you can use to determine whether leasing or financing is right for you. The choice between the two depends on various factors, such as your budget. If you want to keep your down payment and monthly payments as low as possible, leasing may be the more affordable option. That’s because you’ll only pay for the depreciation your car experiences instead of its full purchase price.

Do you drive more than a typical motorist? Then you may want to finance your vehicle. Every lease has a mileage cap, which is the maximum number of miles you can drive every year. If you exceed the aggregate mileage cap by the end of your contract, you’ll need to pay a penalty. Other reasons to finance include building equity in your vehicle and having the freedom to customize it as you want.

Learn More About MAZDA Finance in Middletown, NY

Would you like to learn more about Mazda finance and explore your loan and lease options? Look through our Mazda lease offers and Mazda financing offers to see how they differ. Then, visit our location to talk to our in-house Mazda finance experts and find the right route to Mazda ownership.