To Buy Or To Lease?
That is the million dollar question.
There are many options when it comes time to purchase a new or used vehicle. If you are deciding between purchasing a new car, or financing a lease there are a few things to consider. The main options to drive the vehicle of your choice are purchasing, or leasing.
When you buy, you pay the full cost of the vehicle (either upfront or over time) and become the owner of that vehicle. When you lease, you only pay for the portion of the vehicle during the time that you drive it and in result don’t own the vehicle. If you are interested in buying or leasing a vehicle, please contact one of our sales team at (905) 831-5400.
Buying the Vehicle
Who Owns It
Whether you pay for the vehicle with cash or finance the vehicle you own it. If you’re financing, you will, of course have to meet the obligations the lender requires. and make your monthly payments. As the owner of the vehicle, you are responsible for making the monthly payments, and any upkeep or costs associated with your vehicle. You can calculate your monthly payments using our payment calculator at the end of this article!
If you are financing a vehicle, the lender often requires a down payment. You can trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score. You can save time and apply for financing online using our application!
The value of your vehicle is dependent on a few factors, mainly vehicle maintenance. Be smart and protect your investment with regular scheduled maintenance by our factory-authorized facility!
End of Payments
If you are financing, once you have paid off what you owe on your contract – that’s it! You retain 100% ownership of the vehicle and it’s yours to do with as you will. The lending institution will send you documentation as proof that the vehicle is completely paid off and all yours.
Leasing The vehicle
Who Owns It
When you decide to lease a vehicle, you are deciding not to take ownership. The dealership you leased the vehicle through is the owner. This is why monthly lease payments are less than finance payments. You are paying for the use of the vehicle during the time that you have it instead of the entire cost.
Leases often do not require any type of a down payment. You only require first month’s payment, a security deposit, the acquisition fee and any other applicable taxes and possible fees. However, similar to financing, if you want to lower your monthly payments you can make an initially make a larger down payment.
In most leases you don’t end up owning the vehicle so you don’t have to worry about selling it at the end of your term, that’s the financial institution’s job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.
End of Payments
Most people return the vehicle at the end of the lease term, but you can also purchase it during their lease or at the end. Others like to trade it in before their lease is over and switch to a different leased vehicle. Just ask us about these different options and we’ll make sure you have your lease set up the way you want it.
Best Vehicles to Lease
The best vehicles to lease are those with the highest value after your lease term, since they depreciate as you pay less. Review the lease ratings and speak to our knowledgeable staff to see which vehicles retain their value and would be a good choice for you.