Finance or Lease a new Volvo near Clearwater: Which method is right for you?

Once you've found the Volvo luxury car or SUV that fits your needs and lifestyle, the next step is determining your payment method. Unless you are paying cash up front, you're two options are financing and leasing. Each has its benefits, but which one is a better fit for you? To help you in your decision, here's a quick overview of their benefits and distinguishing characteristics.

Leasing vs. Financing

The primary distinction between a loan and a lease is ownership. With a loan, you own the vehicle and will eventually receive the title after the last payment. And with a lease, you are paying to use the vehicle for a few years and have some options at the end of the term.

• Lease: There are several attributes to a lease that may make it the more desirable option. For example, lease payments are generally less than loan installments, and sales tax applies only to the monthly payments, not the vehicle's full price. And since leases are typically three-year agreements, you can upgrade sooner and enjoy the latest automotive amenities and tech more often. Additionally, a lease contract's buyout option allows you to purchase the vehicle at the end of the lease if the resale value exceeds the initial residual value estimate.


• Loan: With a loan, the commitment is usually longer, monthly payments are higher, and taxes are levied on the vehicle's entire price. However, you own the vehicle and, unlike with a lease, you can modify or sell the vehicle at your discretion. And while leases have mileage limits (usually 10,000, 12,000, or 15,000 miles per year), you can drive your financed vehicle as much as you want without worrying about charges for excess miles.

Lease or finance a new Volvo near Dunedin and Palm Harbor

If you'd like more information about financing or leasing a new Volvo and current Volvo specials, please reach out to Ferman Volvo Cars of Tarpon Springs at your convenience. And if you'd like a closer look at the latest Volvo models, we welcome you to visit us for a test drive. It will be our pleasure to assist you.