Finance vs. lease:
the pros & cons
It can be challenging to choose between buying or leasing! The first thing to do is to think about your goals because what fits for one person may not work for another.
Aurora Dodge's team of finance experts will help you find the best option for your budget and lifestyle.
Pros of buying
- You own the vehicle
- Drive as many kilometers as you want each year
- When you’ve paid off what you borrowed, you’re free of payments and you build equity in the vehicle
- Add accessories, such as a roof rack, cargo carrier, or running boards.
Cons of buying
- Your car will depreciate over time
- You pay for repairs when the warranty expires
- As your car gets older, the repair costs can be high
- When it’s time to get a new car, it’s your job to sell or trade it in
Pros of leasing
- Possibility of lower monthly payments than financing
- Drive a new car every two or three years and experience the latest features
- Planning on moving or travelling at the end of a lease? You won’t have a car to sell
- You’re not stuck with a vehicle that depreciates over time.
Cons of leasing
- Keep the vehicle maintained and in good condition to avoid extra changes at the end of the lease
- A limit on the annual number of kilometers you can drive
- If you always lease, monthly payments never end
- If you can’t afford to keep the vehicle, you could face expensive penalties.
A few things influence your monthly lease payments, including:
- Lease charges
- The value of the vehicle
- Any down payment you make
- Interest rates
- Taxes and fees
- The anticipated depreciation of the vehicle
Both financing and leasing have their benefits. Whatever option you choose, our professional finance managers will go through all the details and answer any questions regarding warranties and other financing options to protect your investment. We look forward to meeting with you soon to discuss your needs and options!