Imperial Auto explains the difference between financing a car, and leasing it.
Leasing a vehicle effectively means that you are renting it by paying a monthly fee to use the car. When the lease term is over, you hand the car back to the dealership or you could choose to buy it back at the vehicle's value at that time.
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Financing a car means that you will borrow money from a financial institution to purchase the car, agreeing to pay off a certain amount each month, with this amount including interest.
You can also choose to finance the vehicle and include a balloon payment at the end of the deal - which means that you have the flexibility afforded by a lower loan payment, but it also means that you will be liable for a lump sum at the end of the term.
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