Leasing vs Financing

    

When deciding whether to lease or finance your next vehicle, keep in mind these questions: What is the purpose of this purchase; business or pleasure? How much can you afford? How often do you like to upgrade to a new vehicle? And finally, how many kilometers will you be driving? Answering these questions may lead you to the best option for you and your new vehicle based on your lifestyle.

If you have the desire to upgrade to the newest vehicle every few years, it is wise to think about leasing, which usually lasts between two and four years.

Keep in mind, there are certain conditions and limitations throughout the lease; you are not the owner, but you are responsible for regular service and maintenance checkups, its overall condition and there are usually mileage limits; if you exceed, it can be very expensive.

Leasing
 a vehicle is a great option if you can't afford a larger down payment, allowing you to provide smaller monthly payments throughout your contract. Another benefit of leasing is that the vehicle is usually under warranty for most of, if not the entire duration of the lease, so any problems that occur will be minimized.

Early upgrades are possible before your contract comes to its expiration; feel free to contact us to see if you qualify.

Once the lease has ended, you have the option to lease a
 new vehicle or buy out your current vehicle. In accordance with the terms and conditions of your lease agreement, a vehicle inspection (examining any mechanical problems, dents, scratches or excessive wear and tear) will be required during the last two months of your lease. Once this has been completed, you will be eligible to start a fresh leasing contract with a new vehicle of your choice. If you decide to buy out your current vehicle, there is no need to worry about a vehicle inspection, excessive wear or mileage charges.

Although leasing is an option for some, if you want to be the complete owner of your vehicle, financing is the solution. The vehicle becomes part of your net worth, you can alter its appearance, add any customization and you don't have to worry about the penalties of the lease-end process.

Financing
 a vehicle can range anywhere from one to eight years. Depending on your financial budget, you can determine how much your monthly payments will be. You also have the flexibility to pay off your loan faster by increasing your payment when you have the extra money to spend. Eventually, monthly car loan payments will stop, making your vehicle fully-owned which will free up your finances for other things.

Once your finance contract has ended, you have the option to keep driving your vehicle for years to come, negotiate a trade-in and put a down payment towards your next Honda or you may sell your vehicle privately.

Depending on the vehicle, financing can be more expensive on a monthly and long-term basis than leasing. Once the warranty has expired, the costs of repairs can begin to add up, but if you are able to commit to proper maintenance over a long period of time, this shouldn't be problematic.

After finding your perfect vehicle and reviewing the pros and cons of both leasing and financing, choose the option that best fits your lifestyle and financial capabilities.

You can contact any of our
 staff if you have further questions or concerns.