Car Loan

Choosing a car loan is a great solution for those who prefer ownership. Once you've made the last payment on your car loan, you own your vehicle outright. Loans come with more freedom as well. You can personalize your car with performance parts or opt for a custom paint job since you're working towards ownership. Love the idea of no-mileage limits? An auto loan is not tied down to mileage limits, so you can drive all around Alaska or anywhere else without worrying about breaking the terms of your agreements. However, since you are purchasing the vehicle, once the warranty is terminated you'll be responsible for the repairs and maintenance. If you're a driver who tends to drive a lot and loves to personalize your vehicle, then a car loan is the way to go.

Auto Lease

An auto lease is a great option for people who crave flexibility in their next car. Once you're done with the lease contract, you can hand in the keys and choose a new car to experience, purchase the car outright, or walk away entirely. Plus, you'll experience more flexibility when it comes to financing. Traditionally, car leases have a lower down payment and smaller monthly car payments compared to a car loan, making more expensive models within reach. If you choose to lease a new car, you'll have very few repairs required, and some of the maintenance will be covered under warranty, saving you money. However, the downside of leasing is that you're not working towards ownership. You also have to abide by the contact, so if you choose to exceed your mileage limit or break the lease in any way, you will have to pay hefty fines. If you don't drive much and you want the newest technology and features every few years, an auto lease is your best option.