Should I Lease or Finance My New Car?
You found your dream car, that meets all of your needs, and now you’re wondering how you should pay for it. Maybe you have leased before and you would like to learn a little more about financing, or vice versa. Whether you have leased or financed before, or you’re new to the car purchasing market, we have the answers for you.
If you’re the type of guy who wants a new car every couple of years, leasing is for you.
With a lease, you’re more likely to be able to afford the luxury car that maybe you would not be able to finance. The monthly payments for a lease are lower than the payments to finance a car. Let’s say you find a car for $29,000. By leasing the car, you are only paying a percentage of the price. If you were to finance the car, you would be paying the $29,000 in its entirety, with interest. Low monthly payments are the most attractive feature of leasing.
Additionally, with a lease you don’t have to worry about expensive repairs. Most leases last three years, which is equivalent to a new car’s bumper-to-bumper warranty. You still need to maintain the car, and a lack of doing so can lead to additional fees.
At the end of the lease if you love the car so much you can purchase it. If you want a new car, you can return it. There’s no commitment.
If you would like to keep your new car for a while, buying is definitely the option for you.
When you finance a car, you own it once you have paid it off in entirety. A benefit of owning your new car is that you have the right to customize it any way you would like. Maybe you want to upgrade the wheels and tires, get a new paint job, alter the suspension, etc.
The greatest benefit of financing a car is that there are no mileage restrictions, like in leasing. If you have a long commute or drive a lot in general, financing is the better option for you.
Make sure you look at your budget and think about what you want most out of your new car experience. I hope I was able to help you decide whether to lease or finance your new car.
Our finance department at Village Luxury Cars serves customers throughout the greater Toronto area and beyond. Please call us 888-787-0724 or visit our finance page to apply at http://www.vlci.ca/finance/