---
id: faq-0016
title: "What's the difference between financing and leasing a car?"
category: faq
subtopic: financing
page_type: faq
source_url: "https://www.castlevwcars.com"
tags: ["financing", "leasing", "purchase-vs-lease"]
questions:
  - "Should I lease or finance?"
  - "What's better-buying or leasing?"
  - "How is leasing different from a loan?"
related: [lease-basics, financing-basics, long-term-ownership]
dealer: Castle Volkswagen of Schaumburg
---

**Financing (Buying):** You own the car after paying off the loan. You build equity, have unlimited mileage, and can modify the vehicle. Monthly payments typically go toward ownership.

**Leasing:** You pay for the right to drive a new car for a set period (usually 2-3 years), then return it. Leases include maintenance, have mileage limits, and offer the latest technology with minimal wear-and-tear risk.

Both work well for different lifestyles. Buyers who keep cars long-term or drive lots of miles often prefer financing. Those who enjoy new cars and predictable costs often prefer leasing.

Our Finance Department at Castle Volkswagen can explain both paths for your situation. **Call (847) 593-4700** to discuss what fits your needs best.