Should I Lease or Buy?
Not sure if you should lease or buy your next vehicle? We’re here to help! Here’s a few quick facts and find out for yourself what suits your lifestyle the best.
Why You Should Lease:
This is a contract with the dealership where you will pay a monthly lease on the vehicle in addition to insurance and maintenance. Leasing your next vehicle is a great avenue for having a newer car with the latest features and low monthly payments. You’re paying for the depreciation on the car, not the full value, and you can switch to a new vehicle at the end of your term. Keep in mind that you don’t own the vehicle, so there are restrictions and you have a set amount of time on your lease. That means you have limitations like how many kilometers you can use per year, and fees associated with ending a lease early. Although repair costs are lower, you will also need to pay for insurance and maintenance.
Why You Should Buy/Finance:
Want to own a new or used vehicle with no restrictions on kilometers? Than you should buy or finance it! You can either pay for the full value of a vehicle outright (buy), or get a loan to purchase the full value (finance). When you get financing for a vehicle, the bank, dealership, or credit union loan you the money to pay for the vehicle. You negotiate your loan terms (monthly payments, term length, interest rate) and pay it until your loan is repaid. There’s more flexibility to pay off your loan early, customize your vehicle however you would like, and sell the car when you want because you own the car from the time of purchase. The monthly payments for a loan tend to be higher, because this is a payment towards the full value of the vehicle, not the depreciation.
Have any questions? Contact us to find out more: