Finance vs. lease:
the pros & cons
What objectives do you have in mind? Each of us has unique preferences when it comes to automobiles, life, and financial matters. Choosing between financing and leasing may be the perfect solution for one individual, but entirely unsuitable for another.
Our exceptional team of finance professionals is here to assist you in discovering the ideal choice for your financial situation and way of living.
Pros of buying
- You own your vehicle
- You're free to drive as many kilometers as you want each year
- When you’ve paid off what you borrowed, you have no more payments
- You are free to add accessories and protections, such as ceramic coating, a roof rack, cargo carrier, or running boards.
Cons of buying
- Your car will depreciate over time
- You will need to pay for repairs when the warranty ends
- As your car gets older, the repair costs can be high
- When it’s time to get a new car, it’s your job to sell or trade it in
Pros of leasing
- Possibility of lower monthly payments than financing
- You get to drive a new car every two or three years and experience the latest features
- Planning on moving or travelling at the end of a lease? You won’t have to worry about having a car to sell
- You don't own a vehicle that depreciates over time.
Cons of leasing
- Keep the vehicle maintained and clean to avoid extra changes at the end of the lease
- There is a limit on the annual number of kilometers you can drive every 12 montys
- If you always lease, monthly payments never end
- If you can’t afford to keep the vehicle, you could face expensive penalties.
A few things influence your monthly lease payments, including:
- Lease charges
- The value of the vehicle
- Any down payment you make
- Interest rates
- Taxes and fees
- The anticipated depreciation of the vehicle
Both financing and leasing have their benefits. Whatever option you choose, our professional finance managers will go through all the details and answer any questions regarding warranties and other financing options to protect your investment. We look forward to meeting with you soon to discuss your needs and options!