Should I lease or Finance my Car?

Yes, that is the question we encounter often here at NewRoads Chevrolet Cadillac Buick GMC. Unfortunately it would be impossible for us to give you the right answer as the answer depends on your needs and wants, but we can certainly try to make your decision simpler. First make sure you understand the difference between the two:
Financing: You will pay the full price of the car in monthly installments over a fixed term, and when the payments stop you will still own the car.
Leasing: Like financing you will have monthly payments over a fixed term. But instead of paying the full price of the car, you will only pay the difference between the original sales price and the residual value (what the car is estimated to be worth after the term is up). When the payments stop you have options, you can give the car back and get a new car, or pay the residual value to own it.
The next thing to do is ask yourself a few questions:
How long do I want to keep this car? If you’re the type of person to drive a car for 2 or 4 years, then trade it in for a new one, leasing could be the better option. If you like to pick a car and keep it for a long period of time, financing could be the way to go.
How far do I drive annually? In the lease agreement there will be a mileage limit. If you won’t surpass that, leasing is still a great option. If you will, be aware that it can significantly increase what you owe at the end of the lease. Really you are only paying for “how much” of the vehicle you use.

Let’s look at a simple list of pros and cons:



PRO: Monthly payments mean you do not have to lay down the full cost of the vehicle at once. PRO: Monthly payments mean you do not have to lay down the full cost of the vehicle at once.
CON: There is a limit on your annual mileage PRO: No limit on annual mileage
PRO: Lower monthly payments as you are only paying the difference between the starting cost and the residual CON: Higher monthly payment as you are paying for the full cost of the vehicle
PRO: For all or most of the term, maintenance will be covered under warranty CON: After the warranty ends you will be paying for all repairs, labour and parts
PRO: Only pay tax on the payment CON: Pay tax on entire price of vehicle

In the end it is impossible to tell you the best choice without knowing what you want and what is important to you. If you are still unsure, contact our finance and lease professionals about your different options and they can help you decide which will suit you best.