Understanding Leasing vs. Financing
If you want to drive a new Jeep in the area, then basically you have two options: you can lease or finance. Leasing is a way to drive a new vehicle for an arranged period, usually two to three years, in return for a monthly payment for its use. At the end of the lease term, you return the vehicle to the house and have the option to lease another model, such as the rugged Wrangler or versatile Compass, or you can purchase the vehicle at residual value.
Car financing, on the other hand, is when you borrow money to buy the car outright. You repay the loan in monthly installments for a set period of time, usually over three to seven years-until you get to take outright ownership of the vehicle. When you have repaid the loan, you then own the car without any encumbrances on the use of the car and the time of sale. This makes financing appealing for buyers who want ownership, especially for models that retain value well, such as the long-lasting Grand Cherokee.