How They Compare: Financing vs. Leasing

Financing vs Leasing a Car: Which One is Right for Me? Piazza Mitsubishi is Here to Answer!

So, it is your first time buying a car from our dealership. Well, let us first welcome you to Piazza Mitsubishi in Reading, PA! Our team works to bring reliable and affordable vehicles to Pennsylvania and we are happy you have decided to come be a part of our family! Whether you know exactly which vehicle you want, or you are still browsing our inventories, it is always a good time to think about financing or leasing. 

Many of you first-time buyers might not know which of these payment options is right for you, when it comes to your next new or used car, but we here at our Reading, PA Mitsubishi dealership are here to help and answer any questions you might have. Let us share with you some of the pros and cons of auto financing and leasing so that you can decide which is right for you, then test drive the vehicle of your choosing here at Piazza Mitsubishi at Pottsville Pike in Reading, PA!

Affordability and Convenience Through Leasing!

Let us begin with leasing a Mitsubishi model. When you lease a new Mitsubishi model, you are essentially borrowing a sedan, hatchback, or crossover SUV for a shorter period of time. Each Mitsubishi loan agreement allows you to drive the new car you want for a set period of time at a set number of miles. You are still required to pay some money down with monthly installments during the course of your lease contract, but these payments only cover a percentage of the vehicle's total value since you are not ultimately paying for the vehicle as a whole, so your short-term payments will be lower. 

Additionally, as most lease contract lengths do not surpass the duration of the vehicle's warranties, your new Mitsubishi model will remain covered under its warranties for the duration of the contract, giving you access to quality maintenance at zero deductible. When your contract is up, you can either return the vehicle, choose another vehicle to lease, or you can arrange to purchase the vehicle from us if you decide you want to make it your own.

However, as convenient as new Mitsubishi leasing can be, this process is not without its caveats. Most lending institutions require a high credit score in order for you to qualify for leasing, so if your credit is average or poor, leasing might not be an option, or you may be required to pay an additional security deposit. Another stipulation comes from the mileage, of which there are restrictions in most auto loan agreements. You and your sales representative can discuss mileage throughout the duration of your contract, but lease agreements tend to be the most practical for those with shorter commutes whom are not prone to long road trips. 

Finally, when leasing a new Mitsubishi model, you are not permitted to make alterations or modifications to the vehicle which might be permanent or leave long-term physical markings. Unless you decide to purchase the vehicle outright, the vehicle must be returned in the condition it was issued, minus normal wear and tear, or extra financial penalties could be incurred.




 

Illustration showing words buy and lease plus common mathematical symbols

 

 

Financing for Long-Term Ownership!

Now, let us say that you find a new or used car, you absolutely love it, and you want to keep it for longer than the typical lease agreement. Then, financing is the right avenue for you as it gives you a bit more privileges than you might find in a lease agreement. In an auto loan, you pay off the total value of the vehicle, but there are no restrictions for how far you can drive the car or what modifications you can make with it. As long as your monthly payments are made on-time through the proper lending institution, the vehicle is yours to do with as you see fit. 

An auto loan is also a good option for those of low, poor, or nonexistent credit as it allows you to build equity and improve your credit score in the long-term, so long as payments are made on-time. Once the loan is payed off, the vehicle is all yours to modify, sell, donate, or loan out as you see fit!

With all of that being said, one of the biggest drawbacks people find with an auto loan agreement is in long-term financing, which can be negatively influenced by bad credit. If your credit is subprime, you may qualify for a loan, but your interest rates could be higher, and you might be expected to drop more cash down upon signing of the loan. 

Another downside which people find to auto loans is warranty coverage; while Mitsubishi warranties are longer-lasting than those of our competing brands, you might find that the lifespan of the vehicle surpasses some of its warranties, thus, you might be required to purchase additional protection plans to help out in the long-term.

Let Us Get Started Today!

No matter which of these options you choose, there are a lot of excellent benefits to be had! So, once you decide if financing or leasing is right for you, schedule a test drive and come see us here at Piazza Mitsubishi in Reading, PA to get started. If you have any questions, do not hesitate to drop us a line or give us a call along the way. See you soon!

Contact

PIAZZA MITSUBISHI

3814 POTTSVILLE PIKE
Directions READING, PA 19605

  • Sales: (610) 921-1500
  • Service: (610) 921-1500
  • Parts: (610) 921-1500

Hours

  • Monday 9:00AM - 8:00PM
  • Tuesday 9:00AM - 8:00PM
  • Wednesday 9:00AM - 8:00PM
  • Thursday 9:00AM - 8:00PM
  • Friday 9:00AM - 6:00PM
  • Saturday 9:00AM - 5:00PM
  • Sunday Closed
  1. PIAZZA MITSUBISHI

    3814 POTTSVILLE PIKE
    READING, PA 19605

    • Sales: (610) 921-1500
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