Purchasing a new vehicle can come with many decisions: brand, model, year, colour, budget, and whether you want to lease or finance your new ride. How do you know which option is best for you? At Quest, our knowledgeable team is here to help you weigh the options to make sure you choose what will ultimately work best for your lifestyle and budget.
It’s important to first understand the major differences between leasing and financing a vehicle: leasing a vehicle is when you make payments for an agreed upon amount of time on a vehicle that you will drive as if it’s your own, but you do not own the vehicle at the end of your leasing period; financing is when you take out an auto loan to help you purchase a vehicle that you will own at the end of your financing period. It may seem pretty straightforward, but there are a lot of financial and lifestyle considerations when it comes to choosing between leasing versus financing.
• Lower monthly payments when you lease. When you lease a vehicle, you are required to put down little to no money or tax up front, and your monthly payments are based on what the expected depreciation of the vehicle will be over the course of your leasing term. With financing, you are typically required to provide down payment and your monthly payments will reflect the total cost of the car over the course of your financing period, which leads to higher monthly payments overall.
• No loan approval required with a lease. If your credit score is on the low side then you might not be approved for a car loan, which takes financing out of the equation entirely. Leasing companies are often less strict than financial institutions, so you can typically get a car lease easier if your credit score is a concern.
• No fuss lifestyle. Leasing a car is a hands-off experience! You don’t have to worry about a huge repair bill the same way you would with a financed vehicle, since your vehicle is generally covered under a manufacturers warranty during your leasing period. You also don’t have to worry about ever having to sell your vehicle, which can be a time consuming and frustrating experience. At the end of your leasing period, you simply return your vehicle or opt to start a new lease with a new car. Many dealerships will offer you a “buy-out” option, where you can choose to buy your car at the end of your lease if it makes sense for you.
• Get a new set of wheels more often. One of the best perks of leasing a vehicle is that leasing terms are typically only one to four years long, meaning you can drive a brand new car every few years. You won’t ever get stuck with an aging car in need of countless repairs, and can enjoy all of the newest upgrades in safety, tech and styling regularly.
For more than 40 years, Quest has been Southern Ontario’s premier independent leasing company. We are not tied to any particular vehicle manufacturer, which allows us to give you unbiased advice on vehicle selection and find you the best leasing options possible. We have helped thousands of people across Toronto and the GTA find the perfect vehicle for personal or business use, and set them up with affordable personal and commercial leases. With four decades of experience in the business, you can feel confident that our knowledgeable team will be working for you every step of the way. Contact our team to learn more about how we can help you find the perfect vehicle and leasing option for your needs today!