What does Leasing and
Financing Mean?
A lease is a
contract made for the use of something, like a new vehicle. It's a contract
made between a lessor (the owner of the asset) and a lessee (the person who
wants to own or use the asset).
Financing on the
other hand, is when a buyer takes out a loan on the cost of the entire vehicle
on which the potential buyer agrees to pay down the entire amount per month
until completely paid off.
A lease contract is
a strictly binding business agreement. The two parties make the agreement and
neither one can deviate from its terms without some exceptional reason. When
agreeing to a lease, you will almost certainly be asked to make a deposit to
cover risk of damages and non-payment. It should be clearly stated in the lease
that the deposit is refundable.
Financing a car is
essentially a form of credit, where you borrow a certain amount of money,
either from the dealership itself, a bank associated with the dealership, or a
personal bank, for a certain period of time, a certain amount, and at a certain
rate. Car loans are issued by banks, credit unions, or the credit arms of the
major auto companies. Deciding on a specific financing source is up to the
buyer and what works best for them, their budget, and their available options.
It's recommended
that no matter what auto financing route you decide to go down, Werner Mazda
recommends doing the necessary homework to make sure you have all the
information you need to make the best decision possible. So not only can you
use our online Mazda lease and finance calculator to determine what your
potential monthly payment could be, you can also stop by and talk to our
finance department and have them answer any other questions you might have.Â
