---
id: faq-0018
title: "What's the difference between a car loan and a lease at Castle CDJR?"
category: faq
subtopic: financing
page_type: faq
source_url: "https://www.castlecdjrnaperville.com"
tags: ["financing", "lease", "loan", "buy-vs-lease"]
questions:
  - "Should I lease or buy?"
  - "What's better-financing or leasing?"
  - "How does leasing work versus buying?"
related: [faq-lease-terms, faq-residual-value]
dealer: Castle CDJR of Naperville
---

**Buying (financing):** You own the car at the end of your loan. Monthly payments go toward equity. You pay for all maintenance, insurance, and repairs. You keep it as long as you like and can modify it. At the end, you own an asset (even if it's worth less than you paid).

**Leasing:** You rent the car for a fixed term (typically 2-4 years). Monthly payments are usually lower because you're paying only for the vehicle's depreciation during your lease. Maintenance and warranty coverage are included. At the end, you return the car-no ownership, no long-term repair costs.

Choose financing if you want long-term ownership, plan to keep the car for years, or drive a lot of miles. Choose leasing if you like driving a new car every few years, want predictable costs, and prefer low-mileage driving.

Our Finance Department helps you weigh both options for your lifestyle. **Call (630) 864-6683** to discuss which path is right for you.