Finance vs. lease:
the pros & cons
What are your plans in the near future? We all have different objectives in every aspect of life, including finances. When it comes to deciding on financing vs. leasing, leasing may be a good fit for one person but not for another.
Drayton Valley Toyota's team of finance experts will help you make the best choice for your life plans and finances.
Pros of buying
- You get to own the vehicle
- Freedom to drive as many kilometers as you want anually
- When you’ve paid off what you borrowed, you’re free of payments
- Buying a car means you can add any kind of accessories, such as a roof rack cargo basket, film protection, a hood deflector, a window deflector, or a sill protector.
Cons of buying
- Vehicles usually depreciate over time
- When your vehicle's warranty expires, you'll need to pay for repairs
- As your car ages, maintenance costs can be high
- When it comes time to get a new car, it’s your job to sell or trade it in
Pros of leasing
- Sometimes monthly payments than financing
- Drive a new car every two or three years and experience the latest features
- Planning on moving or travelling at the end of a lease? You won’t have a car to sell
- You don't have to worry about having a vehicle that depreciates over time.
Cons of leasing
- You'll need to keep up with maintenance to avoid extra changes at the end of your lease
- Leasing means there is a restriction on the number of kilometers you can drive each year
- If you always lease, you will always have monthly payments
- If you can’t keep the vehicle, you may have to pay expensive penalties.
Here are some of the things that affect your leasing costs:
- Lease charges
- The vehicle's value
- A down payment - if you make one
- Interest rates
- Fees and taxes
- The anticipated depreciation of the vehicle
Both financing and leasing have their benefits. Whatever option you choose, our professional finance managers will go through all the details and answer any questions regarding warranties and other financing options to protect your investment. We look forward to meeting with you soon to discuss your needs and options!