You have just purchased a new or pre-owned vehicle and now you need to decide......
"Should I FINANCE it? or Should I LEASE it"?
Here is some information on leasing that may help you decide:
First let's explain what a lease is: A lease is like renting a vehicle for a set term with a "residual" value at the end. The "residual" value is basically a guaranteed value at the end of the lease term. When the lease expires the customer has the option to return the vehicle and select a new one from our incredible inventory, trade it in, or buy it outright.
Advantages to Dealership Leasing:
- Drive a newer vehicle more often! Lease terms vary from 24 to 60 months.
- Lower monthly payments depending on model. Sometimes extra lease incentives are available.
- Possible tax advantages when using the vehicle for business purposes (consult your tax professional)
- Warranty plans are available to match all lease terms.
- GST is paid monthly instead of upfront.
- Competitive Lease Rates.
- GAP (Guaranteed Asset Protection) insurance is provided at no charge.
- Option to return the vehicle to the dealership.
- Option to buyout lease or trade-in vehicle at any time.
- Flexible terms and mileage allowances to suit varying needs.
Advantages to Dealership Financing:
- Competitive finance rates starting from 0%. O.A.C.
- You own your vehicle at the end of the term.
- Only the vehicle secures your auto loan, versus your home securing your Home Equity Line of Credit
- Option to buyout finance contract or trade-in vehicle at any time.
- Any cash down or vehicle-trade equity reduces the total finance loan amount.
So what will it be? Well the key to that answer is all in your lifestyle choice. If you can't decide what vehicle you want to drive, try it with a lease for a couple of years. At the end of the lease you can decide if you want to give it back, trade it in, or buy it outright. If you know what vehicle you want to drive ask yourself, "How long do I plan on driving this vehicle? Do I want to keep it long term or do I want to return it every 2-5 years?"
If you want to drive a newer vehicle every 2-5 years with potentially lower monthly payments leasing may be for you. If you plan on keeping your vehicle for the long term, want to customize it or your kilometres are just too high for a lease, you'll probably want to finance it.
Still Unsure? No worries, at Crowfoot Dodge we are here to answer all your questions regarding your financial needs.