Lease vs. Financing

 

Looking to own a car but don't know whether you want to lease or finance?

Let us help you out!

Both buying and leasing have their own set of pros and cons- it's just a matter of what works best for you and what doesn't.


LEASING

If you decide to lease your next vehicle, there are a lot of factors to consider. If you are a frequent driver and you often put a high number of kilometers, you could run the risk of going over your mileage limit. You could be responsible for the cost of those extra kilometers. These costs also apply if you return the car with over and above average wear and tear according to the dealership. Because the dealership wants it returned in selling condition, it also prevents the driver from making dramatic modifications and customizations to the vehicle.
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Leasing also means that you don't own the vehicle and unless you decide to buy it, you would have to return it at the end of its lease. On a positive note, lease payments are almost always lower that loan payments because you're only paying for the vehicle's depreciation during the lease term, including interest charges, taxes and fees.

With leasing, you don't own the car and unless you decide to buy it, you would have to return the vehicle and the end of your lease period. You can return the vehicle, pay any end-of-lease costs and walk away and start all over again. When your lease is finished, you get to lease a new car without the worry about selling or trading in the old one. But while the future value won't affect you financially, you don't have any equity on the vehicle.
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With leasing, you don't own the car and unless you decide to buy it, you would have to return the vehicle and the end of your lease period. You can return the vehicle, pay any end-of-lease costs and walk away and start all over again. When your lease is finished, you get to lease a new car without the worry about selling or trading in the old one. But while the future value won't affect you financially, you don't have any equity on the vehicle.

Leasing is a good option for driver when:
  • You want to drive a new vehicle: Leasing is a more affordable option to drive a new car. It offers lower monthly payments, which is convenient for drivers to drive a car that they may not be able to drive if they had to buy or finance it.
  • You like getting a new car every couple of years: If you are someone ho enjoy driving the latest models and enjoy the new technology that features in a newer model than leasing is the option for you, as you get to drive a new car every three-five years.
  • You want lower monthly payments: A lot of us like to keep our monthly expenses as low as possible. Leasing allows people to drive a new car for less than financing a new car.
  • You don't put a lot of kilometres on the car: If you don't drive a lot, you don't have to worry about kilometre limits on a lease.

FINANCING

Owning gives the drive much more flexibility with how they use their car and what they do it. Buying a car allows you to make modifications and drive it as you please.

When buying a car you have to pay up front, meaning you may have to take out a loan either through the dealership or a bank. The loan usually have interest on them, and can be vary in length - so you have the option to negotiate the term and monthly payments that works for you.

The good thing about financing is that once you pay off your car, you and only you will the sole owner. 

Financing a car is a good option for you when:
  • You drive a lot: Don't let limited kilometres get in the way! Owning a car mean you don't have to worry about the distance you drive. When you lease there are mileage limits and financial penalties when you exceed them.
  • You plan to keep the vehicle for a long time: Once you pay off your car loan, you own the car. It's an asset you can use towards trade in value on another new car or continue to drive payment free.
  • You like to customize: If you are someone who likes to personalize your car by adding extra features, you won't have that luxury when you lease a car. 
The choice will ultimately come down to your personal preference and financial situation. Whether you choose to lease or finance your next vehicle, Airport Mazda is dedicated to provide you complete customer satisfaction. Come and see us today!
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