Should I Finance Or Lease A Vehicle?

Should I Finance Or Lease A Vehicle?

When it comes to purchasing a vehicle, consumers have two main options for financing: taking out a loan or leasing the vehicle. Both have their own set of pros and cons, and the right choice for you will depend on your individual circumstances and financial goals.

Financing a vehicle, also known as taking out a vehicle loan or auto loan, can be a great option for many consumers. One of the biggest advantages of financing is that you will eventually own the vehicle. You can drive as much as you want, modify it, or sell it whenever you want without any restrictions. Additionally, financing gives you the opportunity to build equity in the vehicle as you make your monthly payments, which can be helpful if you eventually want to sell the vehicle or use it as collateral for a loan.

Benefits Of Financing

No mileage restriction. Unlike leased vehicles, there are no annual mileage limitations that must be adhered to.

Save on interest. Make extra payments to pay your vehicle off quicker. Any additional payments beyond the regular monthly payment will go directly toward the principal amount owing on the vehicle.

More lending options are available. No matter your financial situation, there is likely a financing opportunity available.

Leasing a vehicle, on the other hand, involves paying a monthly fee to use the vehicle for a set period of time, typically two to four years. One of the main benefits of leasing is that it typically requires a smaller upfront payment and lower monthly payments compared to financing. This can make it a more affordable option for those who don't have a large down payment or who can't afford the higher monthly payments of a financed vehicle. Additionally, leasing a vehicle often means that it is still covered under the manufacturer's warranty, which means you won't have to pay for costly repairs out of pocket.

Benefits Of Leasing

Lower payment opportunity. Leasing typically requires a smaller upfront payment and lower monthly payments compared to financing

Peace of mind warranty coverage. You’re still covered by the manufacturer’s warranty when you lease, which means you won’t have to worry about repair costs.

Always Be in A New Vehicle. With leasing, it's easy to get rid of your old vehicle at any time and start the process with a brand-new model.

The Best For You

Ultimately, the decision between financing and leasing a vehicle will depend on your individual needs and financial situation. If you have the money for a down payment and can afford higher monthly payments, financing may be the better option as it will allow you to eventually own the vehicle. However, if you need a more affordable monthly payment or don't plan on driving the vehicle for very long, leasing could be a good choice. It's important to carefully consider all of your options and do your homework before making a decision.

Whether you are planning to lease or finance your vehicle, Lethbridge Toyota will have you smiling. Our dedicated sales team will work with you to see if leasing or financing is the better choice.