Lease vs. Finance

WEIGH YOUR OPTIONS

LEASE

Leasing offers affordable payments with shorter terms

This lets you…

  • Consider vehicles with more options
  • Choose your desired trade cycle
  • Have peace of mind since most terms are within the warranty period
  • You have options at the end of your lease

If the vehicle is worth more than the residual value

  • Exercise your purchase option and keep it
  • Exercise your purchase option and apply the equity to the next vehicle

If the vehicle is worth less than the residual value

  • Drop off the keys and walk away (subject to any excess kilometres or wear-and-tear charges)

FINANCE

Conventional loans typically require longer terms to achieve affordable payments

This keeps you…

  • From trading into a new vehicle sooner
  • Driving the same vehicle longer even when you are ready to trade

Conventional loans have obligations when you trade

  • The owner must find a buyer
  • The owner assumes all of the risk for unexpected depreciation
  • The vehicle’s condition, mileage, and wear and tear will be a factor in assessing the total value of the vehicle
  • The owner must satisfy the loan balance regardless of the vehicle value