Leasing vs Financing in Windsor, ON

Leasing a Vehicle

Leasing a vehicle is a process that can be simplified by thinking of it more like borrowing the vehicle for a time. When you lease a vehicle, you sign a contract that typically lasts 2-4 years, at the end of which you have the option to either buy the vehicle (at a lower cost, which is the vehicle’s depreciation), or lease a different vehicle. Leasing a vehicle typically requires a mileage limit, meaning you cannot use the vehicle for more than the agreed-upon mileage before the end of the leasing term.

Financing a Vehicle

Financing a vehicle, on the other hand, is a process which can be simplified by thinking of it more like borrowing money, which is then used to buy the vehicle outright. The money can be borrowed from a bank, credit union, or a dealership, and is then repaid over a set term that typically lasts 3-8 years. At the end of the contract you simply no longer have to make payments, and can choose to keep it, trade it in, or sell it at your leisure. Financing a vehicle also gives you freedom when it comes to mileage, as you can use the vehicle as much as you want (though vehicles with a higher number on their odometer tend to lose market value more than vehicles that have less kilometres on them).

Leasing

• Lower Payments
• Ability to Upgrade to a Newer Vehicle Every Few Years.
• Warranty Coverage During Lease Term

Financing

• Lower Interest Rate Deals
• Helps Build Credit Score
• Ownership of Vehicle (Can Sell or Use However You Like)