One of the most important questions that many people face when choosing a new Fiat is whether to lease it or finance it. Each option has its own relative benefits and drawbacks, and the decision should be made based on individual needs and financial situation. Here are the major points of consideration to guide you in making the right decision.

Leasing And Its Advantage

A Fiat lease is somewhat similar to hiring a car for a certain amount of time, usually for two to four years. At this time, you will be paying monthly installments for the lease of the car. Depending on your agreement, after the lease term, you can either return the Fiat, buy it or get another new car on lease. One of the good things about lease payments is that they are generally less expensive than loan payments because you are only paying for the value of the car that decreases during the lease period and not the total value of the car.

Leasing offers you an opportunity to change your car every few years, which is beneficial in that you can get to drive new models, enjoy the latest technologies, and have the best safety features among others without having to own them. Lease terms are usually less than the lifespan of the car and this means that you are protected by the manufacturer’s warranty during the lease period.

Disadvantages of Leasing

Leases are usually given with a mileage limit, which is usually between 10000 and 15000 miles per year, and going beyond this is very expensive. When leasing, you do not own the car; rather, you are paying for the use of the car just like you pay to a car rental agency, so you do not accumulate equity. You can be charged for additional costs like the damages on the car beyond the agreed extent, early return of the automobile before the agreed period, or if you exceed the agreed mileage.

Financing And Its Advantages

Buying a car through financing entails getting a loan that will be used to pay for the car. You will pay a certain amount of money every month until the loan is fully paid and at this point the car becomes yours. After you have repaid your loan in full you own the car and you can possess it for as long as you would wish without further paying for it.

Financing a car also does not limit the number of miles you can drive in a month or a year, something that is quite limiting with leasing. One of the significant advantages of owning your car is that you have the freedom to customize it in any way you desire, whether through altering the exterior or interior features.

Disadvantages of Financing

Monthly installments are normally higher than lease payments since you are paying a lump sum of the car’s price tag. Cars lose value over time, especially in the first few years and if one decides to sell the car before it is paid off then he or she will be in a position to pay more than the worth of the car. Once the warranty is over, the cost of repair and maintenance falls on you, and this can be costly, especially with an old car.

Making the Decision

If you frequently use your Fiat and you believe that you would go beyond the standard lease mileage, then financing would be more suitable for you, however, if you use your Fiat rarely and love to have a new car every few years, leasing would be more suitable for you. Another factor that should be considered is if you will only be able to afford small monthly installments and do not care about owning the Fiat. In that case, leasing is right for you. If otherwise, then you should go the financing way to build equity and own the car.

Visit Us Now For Your Fiat Maintenance

If you are a driver of European, Asian, or domestic vehicles and are looking for a courteous auto shop in Kalamazoo, MI, then visit Master Mechanics Auto Repair. It is with pleasure that we assist drivers from nearby such as Battle Creek and Portage, MI. You can always rely on our ASE-certified technicians to attend to any failure in your Fiat. Whether you are the proud owner of a new Fiat or have just bought a second-hand car, we can assist you with its maintenance. Call us at 269-218-5517 for any Fiat services that you need.

* Fiat Car Logo image credit goes to: vesilvio.