Lease vs Buy

When you’re looking to purchase a vehicle in Thornhill, Richmond Hill, or Mississauga, one of the most important decisions is deciding on leasing vs. buying. Should I buy or lease an exotic car? When the potential purchase options include exotic or luxury vehicles, this question is even more relevant. Many owners of vehicles from brands like BMW or Porsche prefer to lease than buy a car. Then the question becomes, “Should I buy or lease an economy car?”

More often than not, owners of Honda vehicles and other economy brands end up financing over leasing. That said, you’re never limited to one or the other – and deciding whether to lease vs. buy a car is based on your needs. Our guide below covers leasing a car benefits, the cons of financing a car, and financing a car benefits.

What’s the Difference Between Leasing vs. Buying?

Leasing a vehicle is a more short-term situation than leasing one. Think of leasing a vehicle as more of a long-term rental situation. You are responsible for the car for a certain number of years, known as your lease term. After this term ends, you’re responsible for turning the vehicle in. Much like renting a vehicle, retailers usually place kilometre restrictions on the leased car and have a designated location for returns.

When you purchase a vehicle, normally you secure a loan for the total cost of the vehicle. These funds go to the dealer to pay for the car, and you pay the finance company back over several years. However, once the finance term is over, you own the vehicle outright, and there are no distance limits attached.

 

Signing a finance agreement

Leasing a Car Benefits

Handshake after singing a leasing agreement

Should I buy or lease a luxury car? Many drivers who prefer brands like McLaren and Audi find more advantages in leasing over buying. Normally, drivers who purchase these brands enjoy high-end features and the most updated options on the market. This presents the perfect opportunity for leasing instead of buying. Rather than secure a loan or purchase a new vehicle every few years, simply return after the lease is over and upgrade to the latest model of your choice.

Those who benefit the most from leasing a vehicle include drivers who prefer the most current models, comfort features, and technology. In addition, if you move frequently or aren’t permanently stationary because of your career, opting for a leased vehicle could provide significant benefits. It’s just important to be sure you don’t go over your distance restrictions.

Many leased vehicles come with a warranty for the duration of the lease. These warranties can help protect your car and reduce potential repair costs.

Financing a Car Benefits

Car keys and money for a financing agreement

Buying or financing a vehicle gives you full rights as owner once the loan for the vehicle is paid off. However, during the finance period, there are no limitations on distance, and you can upgrade the car as you see fit.

When you buy a vehicle servicing and repairing are left completely up to you, meaning you decide when and where maintenance is performed on your car, truck, or SUV. If you have a repair centre you prefer, you’re more than welcome to use them for the life of your vehicle. As with a lease, you’ll have a monthly payment to satisfy, in addition to insurance. However, after you pay off the loan, there are no further obligations each month beyond insurance.

Financing a vehicle also means you can sell it whenever you’d like. You can even sell it if you haven’t paid the loan off yet –  depending on the financial situation and state of the loan.

Leasing vs. Buying: Which Should You Choose?

Depending on how often you drive and purchase new vehicles, deciding on leasing vs. buying shouldn’t be too difficult. If you prefer having the most up-to-date technology and the latest models, leasing is probably a better idea, especially if you have disposable income. Drivers who travel frequently also lease vehicles regularly.

That said, if you’re on a strict budget, financing may be the best option for you. Your payments go toward an investment, and a car you’ll eventually own, making disposable income less of an issue.

Start your search for a vehicle to lease or buy on our website or visit one of our dealerships in person. We happily serve all of Canada, providing drivers with luxury and exotic vehicles for years! Contact us for additional information!

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Pfaff Automotive Partners 43.8233389, -79.5300746.