The Ultimate Guide to Leasing

When it's time to get a new vehicle, one of the biggest decisions you'll face is whether to lease or finance. Both options have their benefits, but depending on your lifestyle, budget, and driving habits, one may be better suited to you than the other. In this guide, we'll dive into the top reasons why leasing might be right for you and compare it with financing, so you can make the best choice for your next vehicle.

Why Leasing Could Be the Best Choice for Your Next Vehicle

Leasing offers several unique advantages over traditional vehicle financing, and it can ofte n make more sense if you're looking for flexibility, lower costs, and fewer long-term commitments. Below, we'll outline the top benefits of leasing a new vehicle.

Pay for What You Drive

With leasing, you only pay for the portion of the vehicle you actually use. A flexible kilometre driving-allowance means you can select a plan that matches your lifestyle, whether you have a long daily commute or stick to city driving.

Lower (or No) Down Payments

Leasing generally requires much lower upfront costs compared to financing. In fact, many leases require no down payment at all. You'll only need to pay licensing charges, a security deposit (if required), and your first month's payment to drive off the lot.

Payoff Protection

If your leased vehicle is declared a total loss due to an accident, you won't be stuck paying the remainder of the loan. Leasing provides built-in payoff protection, so you can move on to a new vehicle without financial penalties.

Warranty Coverage -- Worry Less

Leased vehicles typically come with comprehensive warranty coverage. This can include 3 years/60,000 kms on electrical and most other items, 5 years/100,000 kms on the powertrain, and up to 5 years of roadside assistance. With these protections, you can drive with peace of mind.

Lower Monthly Payments on a Shorter Term

Leasing allows for lower monthly payments compared to financing, since you're only paying for the depreciation of the vehicle during the lease term. Plus, with a shorter term (typically 24-48 months), you can choose to buy the vehicle at the end or lease a new one.

Pay Less in Taxes

When you lease a vehicle, you only pay taxes on your monthly payments, not on the full price of the vehicle. This can lead to significant savings over the lease term, especially for higher-priced models.

Drive a Newer Vehicle, Sooner

Since leasing terms are shorter, you can enjoy the benefits of driving a new car more frequently. This is perfect for those who want access to the latest safety features, technology, and trends without long-term commitments.

Get More for Your Money

Leasing often allows you to afford a higher-trim vehicle with more options and features than you might be able to finance. Enjoy luxury touches and advanced technology at a more affordable monthly payment.

Leasing vs. Financing Highlights

Leasing	Financing
Lower Monthly Payments	Higher monthly payments, but you own the vehicle
Lower or no down payment	Typically requires a larger down payment
Pay for the vehicle's depreciation	Pay for the entire value of the vehicle
Flexible kilometer allowance	No driving limits
Comprehensive warranty included	Warranty may expire before loan is paid off
Option to buy at the end of the lease	Own the car once the loan is paid off
Upgrade to a new vehicle every few years	Long-term ownership
Pay taxes only on your monthly payments	Pay taxes on the full price of the vehicle

Conclusion: Is Leasing Right for You?

Leasing offers a flexible, cost-effective way to drive a new vehicle, with lower payments, fewer taxes, and the option to upgrade more frequently. Whether you prioritize short-term savings, access to the latest technology, or flexibility, leasing could be the perfect choice for your next vehicle. However, if long-term ownership and unlimited driving are more important to you, financing may be the better option.

Frequently Asked Questions

What are the benefits of leasing a car over buying

Leasing offers lower monthly payments, reduced taxes, and the ability to drive a new vehicle every few years. You'll also benefit from flexible kilometre allowances and often lower upfront costs compared to financing.

No, leasing typically requires a lower down payment or none at all. You'll only need to cover the first payment, licensing fees, and sometimes a security deposit.

Leasing includes payoff protection. If your leased vehicle is written off, you won't be responsible for paying off the remainder of the loan.

Yes, leased vehicles come with a comprehensive warranty. Coverage typically includes 3 years/60,000 kms for most components, 5 years/100,000 kms on the powertrain, and up to 5 years of roadside assistance.

Yes, leasing generally offers lower monthly payments because you're only paying for the depreciation of the vehicle during the lease term.

No. When leasing, you only pay taxes on your monthly payments, which can save you a significant amount of money over time.

Leases usually last between 24 and 48 months, allowing you to drive a new vehicle every few years, perfect for those who like having the latest models, technology and safety features.

Yes, leasing often allows you to afford more options and features. You can enjoy a higher-trim vehicle for a lower monthly payment than if you were to finance it.

Our Location

Coordinates

Book a Service Appointment now!

Quick Links