Financing vs. Leasing in Oakville, Ontario
To make vehicle buying less hectic and stressful for car buyers, Budds’ Chev is here to help you sort out which option to choose between leasing and financing by taking you through some of their top advantages and disadvantages. Financing gives you ownership of the vehicle you wish to purchase, whereas leasing is like renting the car for a specific period. Because you don’t own it, you can’t make possible changes or add aftermarket accessories. But with leasing, you can get rid of the vehicle anytime, albeit with early termination fees, and switch to another one, meaning you don’t need to make long-term commitments, which is present with financing. Follow along to learn more about both options to make an informed decision.
Why Choose Financing?
Once you pay off your car loan entirely, the car is officially yours. It’s added to your assets, and you enjoy complete ownership of it for as long as you desire. When you choose to finance, it gives you the right to customize your vehicle with available appearance packages, aftermarket accessories, add-ons and parts, as you desire. This is something you can’t enjoy with leasing.
- You can sell your car anytime without any additional cost and use the money to either pay off your loan or buy a new vehicle.
- With financing, you can drive your car as far and as often as you desire without any restrictions, which exist with leasing.
- You enjoy greater flexibility in terms of monthly payments and interest rates if you pay a higher down payment or continue your loan for a more extended period.
- You’re responsible for evaluating your car’s trade-in value and exploring options when you wish to sell it, which can be challenging by yourself.
- You can’t instantly get rid of your vehicle, even in case of a market or lifestyle change.
- You need to bear additional costs for routine maintenance, services, repair, and insurance with financing.
Why Choose Leasing?
In simple terms, leasing means paying for the use of a vehicle for a certain period of time. You get to pay lower monthly payments, which makes it a cost-effective option compared to financing. With leasing, the dealership owns the vehicle, meaning you need to be extremely careful of damage, everyday wear and tear and mileage. You will need to get the car back in the same shape and condition as it was when you leased it.
- The monthly payments in a lease are lower than financing payments.
- If you’re a car enthusiast, leasing is the perfect option for you, as you can change the car often.
- You can pick the one that matches your lifestyle at the current time.
- You don’t have to worry about reselling it or determining the vehicle’s trade-in value. Just return it to the dealership and get a new one.
- You can’t modify your vehicle or add any aftermarket accessories to it because you aren’t the owner of it.
- You can only drive it a certain number of kilometres, as part of your contract.
- Sometimes early termination fees cost as much as the payment for the complete term of the lease, so make a wise decision before opting for this option.
Visit Budds’ Chev to learn more about financing and leasing, today. You can also apply for financing using the below credit application form.