Finance vs. lease:
the pros & cons
What objectives do you have in mind? We each hold distinct preferences when it comes to automobiles, life, and financial matters. In choosing between financing and leasing, an option that works perfectly for one individual might not be suitable for another.
Our exceptional team of financial specialists is here to guide you in selecting the optimal choice that aligns with your budget and way of living.
Pros of buying
- You own the vehicle
- You get to drive as many kilometers as you want each year
- Once you have paid off what you borrowed, you’re free of payments and you build equity in the vehicle
- Add accessories, such as a window deflectors, cargo carrier, or running boards.
Cons of buying
- Your car will depreciate over time
- Once the warranty expires, you pay for repairs
- Repair costs usually increase as a car ages
- When it’s time to get a new car, it’s your job to sell or trade it in
Pros of leasing
- Sometimes leasing payments are lower 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 be concerned about having a car to sell
- You’re don't have a vehicle that depreciates over time.
Cons of leasing
- Be sure to keep the lease vehicle in good condition to avoid extra changes at the end of the lease
- A limit on the annual number of kilometers you can drive
- If you always lease, monthly payments never end
- If you can’t afford to keep the vehicle, you could face expensive penalties.
A number of items affect 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!