The Loan vs Lease Decision
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.
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.
Buying vs. Leasing
The table below outlines the important differences between buying and leasing.
|Financing with a loan||Financing with a lease|
|You own the vehicle
||You can enjoy a new car every few years
|Ideal if you want to keep your vehicle for a long time
||Perfect if you like the latest and greatest technology
|No concerns about wear and tear
||You’re responsible for the vehicle’s maintenance
|Drive your vehicle as much as you want
||You choose your annual driving distance limits
|Customize your ride the way you like
||Enjoy lower monthly payments
|Because you’re paying for the full price, you might need a longer term
||No need to negotiate a trade-in value at the end of your lease
|You’re responsible for repairs once the warranty expires
||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.