What is Equity in a Car?

Many car buyers wonder: what do I get after months and months of making payments on a car. The answer is equity. What is equity? It is the difference between the balance left on your car and what you have paid for that car so far. When you have paid your car off in full, the bank removes their name from the balance sheet and your car is fully yours! In the meantime, you are building equity in your car.

This may sound somewhat discouraging at first: paying into an asset that the bank shares with you. However, building equity in the car is one of the smartest things one can do with an asset. This rings especially true when the asset is one that holds its value as well as an INFINITI, loaded to the teeth with features.

Building Equity is Building Value


What is building equity in a car? What is the point? Well, it is important to note that during the process of building equity, if you choose to sell or trade in the car, the equity that you have built on that car is yours. That means the value that you have put into it, you get out when selling or trading in that car. This makes buying a car, new or used, a strong consideration to make against leasing the same car.

When you lease a car, the payments go to the dealer for borrowing that car. Those same payments, when buying a car, go to the bank, and build equity towards owning the car outright yourself. When you are done with the vehicle, the equity you have built when bought factors into how much you get back for that vehicle. With leasing, no equity is built, but the payment for the vehicle is lower.

What does it mean to have equity? It means that you have value in the car. Building equity is something exclusive to buying a car, and is one of the benefits of having a higher payment than leasing the same car.

Equity in INFINITI is Worth it

Something to keep in mind when making this decision is that INFINITI is an excellent brand to build equity in. Boasting a high resale value due to reliability and a variety of features, the equity that you have built in the car you bought will go further when it’s time to switch to a different automobile. Building equity in a new or used INFINITI is the right choice, here at INFINITI of Dayton.