Leasing vs. Financing
Leasing vs. Financing in Toronto, Ontario
Buying a vehicle is a serious commitment, one that comes with tons of research and responsibility. Sometimes, finding the right vehicle is the easy part, but when it comes down to deciding whether you want to lease or finance things can become a bit trickier. Read on to learn more about the difference between the two, and which one is right for your needs, with North York’s source for all things Chrysler, Dodge, Jeep, and Ram: Golden Mile Chrysler!
Financing vs leasing
The choice of whether to finance or lease a vehicle depends on the unique needs and situations of each of our customers. While financing might be the right choice for some, others might get more value out of leasing. One of the members of our finance team will always be happy to talk to you about what we think is right for your situation, however, the following guidelines might help you determine if you’d rather lease or finance a vehicle from Golden Mile Chrysler.
What is vehicle financing?
When you finance a vehicle, it means you’re taking out a loan to purchase the vehicle over a set period of time. That means you’ll make monthly payments, and you’ll own the vehicle at the end—sort of like mortgaging a house.
What is a vehicle lease?
If financing is like mortgaging a house, leasing is like renting one. You’ll make monthly payments over the course of the term you plan to lease the vehicle (with the option to buy down the road), or you can simply lease another vehicle.
Leasing a vehicle may be right if...
- You want a vehicle with more options
- You want a vehicle that’s under warranty
- You want to trade up to better vehicles more regularly
- You aren’t sure if you want to keep this specific vehicle
- You only need a vehicle for a short period of time
- You have a very stable lifestyle, both in terms of income and routine
- You want (potentially) lower monthly payments
- You don’t drive a lot
Financing a vehicle may be right if...
- You want to build equity
- You plan on owning a vehicle for a long time
- You’re not concerned about whether the vehicle is under warranty or not
- You don’t mind a vehicle depreciating more
- You don’t mind (potentially) higher monthly payments
- You want to rebuild your credit
- You have subprime credit
- You don’t mind privately selling your vehicle yourself
Trade-in your old vehicle
If you do decide to finance your next vehicle purchase, you can use any vehicles you may have at home to defer the cost via a trade-in. Click the link below to explore the value of your trade-in, to see if that’s a route you’d like to go down.