Finance vs. Lease
Are you looking to finance or lease a new or used vehicle in Pickering, Ajax, Whitby, Oshawa and the Durham Region?
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 are to purchase the vehicle of your choice, or to lease it.
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 +1 (905) 428-8888.
Who Owns It
When you purchase a vehicle, whether you finance or pay with cash it’s yours. If you’re financing, you will have to meet the obligations the lender requires and make your monthly payments. As the owner of the vehicle, you are responsible for 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, a down payment may be required. You can trade-in your current 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 online finance application.
The value of your vehicle is mainly dependent vehicle maintenance. While there are a variety of other factors, scheduling regular maintenance with Acura Pickering is an easy way to protect your investment.
End of Payment
If you are financing, once you have paid off what you owe on your contract, you fully own the vehicle. You retain 100% ownership 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 you will no longer have to make payments.
If 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 your lease or at the end. You also have the option of trading in your vehicle before the lease is over and switch to a different leased vehicle. Just ask us about these different options available to you!
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.