Lease or Loan? Love What You Drive!

For many car owners, a car is more than a means to get from Point A to Point B—it’s a reflection of freedom, accomplishment and personality. The make, model, trim, color and extras often say a lot about who you are and what you care about. Drivers see their cars as extensions of themselves. They care about them as if they were family, going so far as to name and anthropomorphize them. In short, some car owners feel emotionally attached to their vehicles.

The same can be said about the car-buying experience: There’s emotional appeal to both leasing a car and financing one. These two popular ways of acquiring a vehicle often are tied to financial considerations, but the final decision carries some emotional gravity, too. So, what are some of the emotional appeals behind financing vs. leasing a car?

Before digging into that weighty answer, it’s important to understand the fundamental differences between the two types of car acquisition. Financing is when you take out a loan and pay for the car over time, paying principal and interest. At the conclusion of the payments, the car is yours outright. Leasing, which is increasing in popularity, essentially allows you to borrow a car from a dealership for a set period of time—the average is 24 to 36 months—and set mileage in exchange for monthly payments, which can be less than financing payments. 

The Satisfaction of Financing a Car

The decision to finance a car stems in part from feelings connected to ownership, independence and stability. These emotional considerations—influenced by friends and family, past experiences, personal values, financial situation and stage of life—prove strong enough to sway a car buyer toward financing.

The Joy of Ownership

Financing a car is a means to an end—the joy of ownership. The journey, a long-term investment starting perhaps with a small downpayment (or none at all, depending on your credit), is filled with satisfaction, knowing you’re investing in something for yourself.  Pride surfaces with every payment as you build equity and work toward unencumbered ownership.

Once you’ve paid the loan’s final installment, car buyers who finance can bask in a sense of accomplishment, celebrating a personal achievement. You’ve worked hard over the course of your loan, whether it was one year or eight years. The car is a tangible reward and proof of your financial discipline and planning.

The Freedom to Decide

Additionally, financing engenders a feeling of independence. You are at liberty to choose the vehicle you want and personalize it to your preferences. Choose the seat style, the paint, the wheels—all the custom choices are yours. Gratification comes with getting exactly the car you want.

Then, you get to drive it: Go anywhere, anytime. You are free from mileage limits, so the open road is yours to travel for spontaneous trips, planned adventures and new travel memories. Use your car as much or as little as you wish, taking comfort that it’s 100% yours and you can keep it for as long as you want. The car’s health and care are in your hands: Perform maintenance when it suits you rather than on a rigid contracted schedule.

The Comfort of Security

Because the car is yours with financing, it’s a car you can trust and rely upon. You don’t have to turn it over to someone else at the end of a term; you don’t have to worry if you spill coffee or a passenger accidentally opens the door into a concrete column, denting the panel. Financing eliminates anxiety and alleviates stress while promoting stability and a comforting sense of permanence.

The Delights of Leasing a Car

The influences that encourage drivers to lease a car may be similar to the ones that nudge them toward financing one, but the emotional benefits are different. Leasing brings novelty, prestige and ease. Plus, it offers flexibility to finance later or continue leasing since you’re locked in for only two to three years, the usual length of lease agreements.

The Excitement of Novelty

Forget driving a car until the cost of repairs exceeds the car’s actual value. With leasing, you can drive a different brand-new model every time your lease term concludes. Want to see what life is like driving an electric vehicle? Lease one. Always wanted to get behind the wheel of a high-performance machine like a Porsche? Lease one. Every few years, update your ride and keep the driving experience exciting and fresh.

With these new cars also comes access to the latest features and technology.  Leasing enables you to stay on top of design innovations and experience first-hand how the car industry is evolving. The thrill of driving a new vehicle, outfitted with all the bells and whistles, never gets old. Plus, the best car lease deals allow you to satisfy curiosity about particular makes and models without a long-term commitment.

The Power of Simplicity

Leasing a car offers numerous advantages, making it an appealing and easy option for many. One key benefit is that you don't have to worry about the car's depreciation; since you don't own the vehicle, the decline in its value over time isn't your concern. Additionally, maintenance is typically straightforward and hassle-free, as most leases include service packages through the dealership. This ensures that any necessary repairs or upkeep are managed efficiently, providing peace of mind and saving you both time and effort.

The Calm That Comes with Ease

In many ways, leasing makes your life easier. Let’s say your job requires you to move every couple of years. No problem. Lease a convertible in Florida and bask in the warm sunshine. Or, if you land in Colorado, lease a 4-wheel-drive SUV to confidently conquer the snow. Life changes are easier thanks to the flexibility of leasing.

Need a car quickly and almost effortlessly? Leasing is an answer. Because dealerships most often do not require a downpayment upfront, you can walk in, pay the first month (plus fees) and drive away the same day. There’s no saving for a downpayment, so you can swiftly and easily get the car you want when you want it.

It’s financially reassuring, too, that leasing generally comes with lower monthly payments, which means you’re free to do more with your money. Sometimes the best car lease deals include routine maintenance and warranty coverage, so oil changes and unexpected repairs do not incur out-of-pocket costs for you. A reduction in financial responsibility goes a long way to minimizing anxiety, reducing stress and promoting inner calm.

Even at the conclusion of your lease, the process is hassle-free. Simply return the car you’ve been driving and start fresh with a new one. The hardest part is choosing what you want to drive next.

In the end, the decision to lease or finance a car is based on many factors, some practical, and many connected to how you feel. Complete ownership might make you feel proud of your financial accomplishment. Or, driving a new car every couple of years might satisfy your curiosity and instill a sense of excited anticipation at experiencing the next great vehicle innovation. Whatever your drive and desire, understanding that emotions are part of the car acquisition process can help you make the best choice for you.