When you finally find the new Volvo model that checks all the boxes on your list, the next step is to decide how you'd like to pay for it. There are three methods, the least common of which is to pay the entire balance upfront. It's also self-explanatory, so we'll focus on the differences between the two more common methods: financing (loan) and leasing.

The primary differentiation between a loan and a lease is ownership. With a loan, you are paying into the principal and own the vehicle. With a lease, you pay for the vehicle's use for a pre-determined term, at the end of which you have a few options.

Leasing from Volvo Cars of Temple

Leases offer several benefits. With the typical lease term being three years, Lessees aren't tied into a long-term commitment. And while you're not paying into principle, lease payments are generally appreciably lower than with a loan. Plus, the vehicle is under warranty for the duration of the contract. When the lease term concludes, the lessee has the option to move into the latest model year, pick a different model, convert the lease to a loan, or return it free and clear.

There are a few details that are important to keep in mind when considering a lease. As a lessee, you won't be the owner of the vehicle and can't make major changes. Additionally, leases have yearly mileage limits, with penalties for exceeding the allocation.

Financing from Volvo Cars of Temple

Since Volvo's are renowned for their quality and longevity, it's common for Temple-area drivers to seek ownership. Unlike with a lease, you are the owner of a financed vehicle. With that in mind, monthly payments are often higher, and depreciation is a factor. After the original factory warranty concludes, you are responsible for repairs unless you purchase extended protection. Financed vehicles can be modified to your liking and carry no mileage restriction.

If you'd like more information about our Volvo models, finance options, or any part of the car-shopping process, don't hesitate to contact Volvo Cars of Temple. We'll be happy to assist you.

Categories: Finance, New Inventory