Leasing vs Buying a Car: Pros And Cons

Are you on the market for a new car?

Purchasing a new or used vehicle is full of big decisions. You’ll have to debate between make, model, color and hundreds of different features. But there is one even bigger question: are you going to lease the new car or buy it? 

The debate between leasing vs buying a car has a lot of different pros and cons. It’s crucial that you think about which option is right for you before you start your car search. 

If you’re not sure what to do, keep reading for more information on the difference between buying and leasing a vehicle in Canada. 

Leasing Vs Buying a Car: Which One Is Best? 

Buying a car is sometimes a stressful process. Whether you decide to lease or buy, it’s a personal decision that requires careful consideration. Here are five things you need to consider when you’re trying to decide between leasing vs. buying a car:

1. Do You Have a Large Down Payment? 

Whether you lease or buy a car, you’ll likely need a down payment. The amount will differ depending on your financial situation. But in most cases, you’ll need to put more money down if you plan on purchasing the car. 

You might also need a sizeable down payment for your lease agreement. This money might not be a big deal to you, but keep in mind that this is money you’ll never get back since you won’t ever own the car.  

2. Do You Want to Own? 

If you want to own your car eventually, you’ll want to buy. Some dealerships might offer a lease-to-own option, but make sure you ask about this before you sign anything.

The benefit to buying is that eventually the payments will stop and you’ll own the car. With a lease, you’ll be making a set payment every month for as long as you have the car.  

3. How Often Do You Want a New Car? 

A benefit to leasing is that you’ll have the option to get a new car every few years, without the hassle of selling and purchasing again. Car technology gets better and better every year, so it might be nice to get an upgrade. 

4. Do You Want to Make Customizations? 

Do you want to tint your windows or get new tires? If so, you should probably opt to purchase a car. Your lease agreement might not allow certain customizations. 

5. How Much Mileage Do You Need? 

Some lease contracts restrict how much mileage you can put on a car, to prevent excess wear and tear. Mileage usually isn’t a problem for the average driver, but if you’re in the car more than usual or plan on making major road trips, you should proceed with caution. 

Learn More About Buying a Car in Canada 

Everyone needs to have the leasing vs buying a car debate before they get to the dealership. You should also contact us about getting an auto loan. We offer auto loans for everyone, including those with bad credit. Give us a call at 613-777-6434 today to learn more about your options.