Lease vs. Loan: Which Option is Right for You?

Bill Kidd's Volvo Cars near Bel Air and Timonium works hard to make car shopping a simple and enjoyable process. From research to test drive, we want our customers to feel confident and comfortable. And that means helping shoppers make informed decisions about their financing options.

Auto financing breaks down into two typical routes: OEM leases and auto loans. Both options are helpful to customers who want to break up the cost of a car into monthly payments, rather than paying the full sum up front. However, there are notable differences between leases and loans that are important to keep in mind.

New Model Leasing

Car leasing is a lot like a long-term rental. Rather than purchase the vehicle outright, you'll borrow it from the dealership and pay monthly installments. Choosing a lease has some considerable benefits.

  • Because you're only paying for the cost of depreciation during the term, your monthly payments will likely be low than with an auto loan.
  • Since most leases only last two or three years, you can count on getting fairly regular upgrades to newer model years.
  • Your leased vehicle will be covered by a factory warranty -- that means lower maintenance costs.

These benefits can be quite enticing, but there are a few things to think about before going through with a lease as well.

  • Leasing a car doesn't give you full ownership of the vehicle.
  • Lease agreements usually have mileage limits and prohibit modifications. If you have high-mileage driving habits, leasing may not be for you.
  • Excess wear and tear can result in expensive additionally charges.

Auto Loans

If you're looking for long-term ownership, an auto loan is the right way to go. Unlike a lease, a loan will give you full ownership of your vehicle. The lender puts up the money to purchase the vehicle. Then, you pay back the loan with monthly installments and interest. It's a compelling option for many shoppers.

  • You own the vehicle.
  • You won't have to deal with mileage limits.
  • You can sell or trade in the vehicle any time -- no need to wait till the end of a lease term.
  • You can save more money over a longer period of time.

Auto loans are very popular for car shoppers at our dealership near Hunt Valley and Cockeysville. There are a few things to keep in mind before you apply, however.

  • Auto loan payments are usually higher than lease payments, since you're paying for the full value of the car over time.
  • Once the warranty is finished, you'll be responsible for the cost of repairs.
  • Your car will likely depreciate in value.

Come Chat with Our Finance Team About Financing Options

Bill Kidd's Volvo Cars has plenty of financing options for both new and used vehicles. Whether you're interested in a lease or loan, you can count on us to help you find the best offers available. We're happy to give you the support that you need. Stop by our location near Towson and Baltimore to learn more. You can also get started with our online finance application.

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Important Privacy Information

Privacy Statement

As a valued customer, we want to ensure your private information is kept private and only shared with those companies who are authorized either by yourself or as allowed or required by law. This document explains our privacy policy, gives you reasons why we ask for the type of information we do, and if we do reserve a right to share information with non-affiliated third parties, lets you "opt-out" of our reservation to do so. Please take a moment to read this entire policy.

Collection of Information
The purchase of a motor vehicle requires considerable accumulation of nonpublic personal information. For example, if we sell or lease you a vehicle - extending you credit at your request - we will receive information from you in order to determine your creditworthiness. We may also obtain information from a credit-reporting agency. We may also obtain information from third parties such as employers, references and insurance companies.

Some of the information we obtain from you may be required by state of federal agencies, such as the Department of Motor Vehicles or the Internal Revenue Service. This information may be required even if you were to pay cash for your vehicle. Examples would be a driver's license or social security number.

Protecting Your Information
We safeguard nonpublic personal information according to established industry standards and procedures. We maintain physical and electronic safeguards that comply with state and federal law. We restrict access to nonpublic personal information about you to those employees and outside contractors who need to know the information to provide product or service to you. We prohibit our employees and agents from giving information about you to anyone in a manner that would violate any applicable law or our privacy policy.

Information Sharing
Unless we have indicated our desire to share your nonpublic personal information with non-affiliated third parties (by checking the box in the section below), we share information:

A) For everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, or report to credit bureaus.

B) For purposes of processing a sale or lease transaction as your request or authorize, such as submitting information to third party financial institutions that may be requested to take an assignment of the contract or verifying insurance coverage information.

C) When using outside service providers to help us provide you with products and services. Before providing information to our service providers we enter into contractual agreements prohibiting them from disclosing or using the information other than for the purpose it was disclosed.

D) With "Affiliated" companies. Companies that are affiliated with us include any company that controls us, any company we control, or any company under common control with us.

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I am interested in purchasing or leasing a vehicle and request that my Consumer Credit Report be obtained, at no cost to me, in order to help determine the types and extent of financing which may be available to me.


Bill Kidd's Volvo Cars

10630 York Road
Directions Hunt Valley, MD 21030

  • Sales: 410-666-8901
  • Service: 410-666-4020
  • Parts: 410-666-4020


  • Monday 9:00am - 8:00pm
  • Tuesday 9:00am - 8:00pm
  • Wednesday 9:00am - 8:00pm
  • Thursday 9:00am - 8:00pm
  • Friday 9:00am - 8:00pm
  • Saturday 9:00am - 5:00pm
  • Sunday Closed