3400 Dufferin St, Toronto ON, M6A 2V1 Ph: (416) 781-5271
Financing vs. Leasing
Deciding whether to buy or lease a
new or
used car or truck can be a time-consuming process. There are so many questions
about financing and leasing, and just as many dealers with confusing answers. At
Plaza Pontiac Buick Inc, we want to give you the facts about buying or leasing a vehicle.
Before speaking with our
finance staff read the pros and cons of leasing or financing a vehicle below. Take the time to
read the article and make an informed decision for yourself. Once you have made your decision choose from one of these
options and we'll get you into a great vehicle today!:
If we can be of any further assistance feel free to visit or contact us at
Plaza Pontiac Buick Inc.
To Lease or to Buy that is the Question.
The Answer? It Depends.
A frustrating answer to hear, but a true one none-the-less. Typically, the answer depends on you, the consumer. One is simply
not better than the other, just different. When deciding whether to finance or lease a vehicle you must decide about your
own personal priorities and what is important to you:
- Do you need a new vehicle every few years?
- Is having a new vehicle every few years, with few repair costs more important than long-term cost?
- Are monthly payments more important than owning a vehicle and having equity?
- Is saving money over a long-term period more important than low monthly payments over a short-term?
These are the most important questions you need to ask yourself before choosing to lease or finance a vehicle.
Buying and Leasing – Apples and Oranges
Although buying and leasing an automobile are different processes, both are simply a means of financing a vehicle.
When you finance (buy) a vehicle, you are purchasing the whole vehicle. The dealer is not interested in how many
kilometres the vehicle is driven or its repair costs. In most cases, you are responsible for a down payment, as well as all
taxes, delivery charges, any optional equipment or extras you deem necessary, and an interest rate determined by the
dealership or a third party. The first payment is then due a month after you receive the vehicle.
When you lease a vehicle the monthly payment is lower than when purchasing a comparable new vehicle: you are only
paying for the portion or time of the vehicle that you use up while driving it: its depreciation. Taxes are calculated on the
monthly installments rather than up front on the total purchase price and you pay a fee that is similar to the interest rate
of a loan.
Consider the following example. The sticker price of a car is $20,000 and its estimated value after two year is
$15,000. If you were to purchase the vehicle your cost would be $20,000 + taxes + fees. If you were to lease the vehicle for
two years you would pay the difference in price between the two years: the $5,000 ( the vehicle’s depreciation) +
financing + fees. This is why leasing payments have a lower monthly fee.
To summarize, many drivers find they can afford a more expensive vehicle or manage lower payments if they lease rather
than buy. However, at the end of the term you, the consumer does not have any equity in the vehicle.
We hope this article was useful. For information about any of the vehicles we offer or for more information about financing
or leasing select an option below:
PS: Our Used Vehicle Database contains 30245 vehicles.
So apply online today for financing or leasing
or come and visit
Plaza Pontiac Buick Inc in
Toronto, Ontario (ON)
and drive-away a vehicle today!
Plaza Pontiac Buick Inc is here to satisfy all of your car and truck financial and
leasing needs.
