For most vehicle shoppers, affordable monthly payments and reliable transportation top their list of essentials. Securing a loan for a vehicle can influence the decision. Estacado finances new & used trucks, cars, motorcycles, ATVs and RVs at great rates. If you put the pros and cons on paper, financing at Estacado will likely be the better choice. Here are a few reasons why a car loan has more advantages than a lease.

4 Benefits of Car Loans

1. Long-Term Savings

All vehicles are reviewed with CARFAX to prevent vehicle losses. Once you receive a vehicle loan, your monthly payments will eventually lead to ownership. Members may also pay off the loan early at any time with no penalty. After the vehicle is paid off, you completely own it. You can then eventually sell it or use it as a trade-in toward another vehicle purchase. Leasing doesn’t offer long-term savings because at the end of the contract, the lessee is typically required to turn the vehicle back in. Essentially, the user was renting the car or truck.

2. No Costly Penalties

When you buy a car, you don’t have to worry about penalties for excess mileage or wear and tear. You can drive as far as you want without facing costly fines. Auto leasing contracts typically charge users at the end of the term for going over mileage thresholds. Lessees are also responsible for keeping the leased vehicles in top condition or face hefty penalties.

3. No Commitments 

Financing also allows borrowers to sell their vehicles at any time. This includes in the middle of the loan contract. Leasing doesn’t provide the option to sell because lessees have agreed to use the vehicle for a certain term. In fact, if the lessee wants to turn in the car or truck before their contract ends, they might have to pay an early termination fee.

4. Flexibility

Do you want to add a snazzy set of rims or change the color of your vehicle? When you finance with a vehicle loan, modifications are yours to make. A leased vehicle strictly prohibits making any changes to the interior or exterior body. If the lessee makes a change, they might have to pay penalties.

Borrowers typically have a lot more options when they finance a vehicle. Estacado Federal Credit Union in Hobbs, NM, makes the financing process easy, fast, and convenient. If you’re in the market for a new or used vehicle, let the friendly lending team help you. To get started  today, visit their website to fill out the quick online loan application.