The Loan vs. Lease Decision

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Should you buy or lease?

It’s a crucial question when you’re deciding on a new car. Learning about each option can help you make the choice that’s right for you.

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Buying Your Vehicle

When you buy a vehicle, you take out a loan and your payments go towards financing the total cost of the vehicle. Once you pay off your loan, the vehicle is yours.

Leasing Your Vehicle

Leasing is like a long-term car rental. Your payments let you drive the vehicle, but you don’t own it. When the lease is over, you can return the car to the dealership or buy it for the residual value.

The chart below outlines the important differences between buying and leasing.

Financing with a loan

  • You own the vehicle
  • Ideal if you want to keep your vehicle for a long time
  • No concerns about wear and tear
  • Drive your vehicle as much as you want
  • Customize your ride the way you like
  • Because you’re paying for the full price, you might need a longer term
  • You’re responsible for repairs once the warranty expires

Financing with a lease

  • You can enjoy a new car every few years
  • Perfect if you like the latest and greatest technology
  • You’re responsible for the vehicle’s maintenance
  • You choose your annual driving distance limits
  • Enjoy lower monthly payments
  • No need to negotiate a trade-in value at the end of your lease
  • Leases can usually be structured to stay within the warranty period

Still not sure which way to go?

Speak to your dealership. They’ll help you make a decision that’s right for you.

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At the dealership

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Visit your dealer and ask for Scotiabank financing

Still have questions?

Call us

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1(800) 4SCOTIA

1(800) 4SCOTIA