Leasing vs Financing in Leamington, ON

Financial Options at Leamington GM

Vehicle purchasing boils down to two choices: leasing it, or financing it. Both of these financial options have their pros and cons, so it’s important to consider your particular financial situation and which you’d prefer carefully before stepping into a dealership to buy a vehicle. Read on with our financing team at Leamington GM as we cover the differences between leasing and financing as well as the benefits of both so that you can make an informed decision the next time you choose to purchase a vehicle!

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Financing a Vehicle

When you finance a vehicle, you borrow money from a third party (usually a bank, credit union, or a dealership) which is used to buy the vehicle outright. This means you own the vehicle from the moment you sign the financing agreement, and are paying off the loan to the third party over a set term that typically lasts 3-8 years. Once the term is over, you no longer have to make payments, and can choose to do whatever you want with your vehicle, be it keep it, trade it in for a new model, or sell it. Financing provides you with freedom when it comes to usage as well, as you can use the vehicle however much you need, though vehicles with higher mileage often have a lower market value compared to vehicles with lower mileage.

Leasing a Vehicle

On the flipside, leasing a vehicle is more like borrowing the vehicle for a set term. When you sign a leasing agreement, you pay the dealership to use the vehicle, typically for a term of 2-4 years. Once the term is over, you choose from either buying the vehicle outright (at a lower cost than you would have at the start of the leasing term, as you only pay for the vehicle’s depreciation) or returning the vehicle to the dealership (when you then can either lease or finance a different vehicle). When you lease a vehicle there is typically a mileage limit, meaning while you are using the vehicle you cannot exceed the agreed-upon mileage amount before the end of the leasing term.

Benefits to Leasing or Financing

The main benefit of leasing a vehicle is that your payments are often far lower. This makes it easier to get a brand new vehicle, or even a used vehicle, and enjoy all the perks it has to offer. Leasing a vehicle also lets you upgrade to a newer vehicle every few years very easily, which can be beneficial to those who prefer having the newest tech and comfort features. Leasing a vehicle also often comes with warranty coverage for the entirety of the lease term, meaning if you ever are in a vehicular accident, any repair work will not be completely paid out of pocket.

The biggest benefit of financing a vehicle is the fact that you own the vehicle outright. This means you can use it however you like without any stress. Interest rate deals are often more common on financing terms than leasing, meaning you don’t have to pay as much as you might otherwise. Financing a vehicle also helps build your credit score, which can be helpful for those who might have low or no credit.

Finance or Lease a Vehicle at Leamington GM in Leamington, ON

Whether you want to lease or finance a vehicle, our team at Leamington GM is ready to help you! You can get a vehicle from either our new or used inventories, and our financing department can get you the best deals to make it happen. Contact us to start the process of getting yourself a vehicle, visit us in Leamington, ON, to see our inventory, and use the form below to apply for credit today!