Should I lease or finance my vehicle?

The main difference between leasing and financing a vehicle is ownership. With a lease, you pay a fixed amount of money every month in exchange for using the vehicle, then at the end of the lease contract period, you have the option of either returning the car or buying it. With financing, your payments go towards owning the vehicle and then when it’s paid off, it’s all yours. But of course, there are pros and cons to each option.

PRO’S AND CON’S OF LEASING A VEHICLE

With leasing a vehicle you are only paying for the depreciation, hence why the payments are less compared to finance payments. If you tend to get bored of vehicles quickly then leasing is a great option for you because most lease terms are 2-4 years and after the term is up, you’re able to switch to another different vehicle. Since you are purchasing a newer vehicle with a lease, this will also prevent you from spending extra money on mechanical repairs because the term is short.

Since you don’t own the vehicle with a lease, there are certain incidents where you may have to pay at the end of your term if you have gone over your mileage cap and if there is any damage to the vehicle.

PRO’S AND CON’S OF FINANCING A VEHICLE

Although monthly payments are much higher compared to leasing, they are building up your equity which results in you owning your vehicle. Owning your vehicle has many benefits like being able to customize it with cool parts and accessories and not having to worry about going over your mileage. The longer your drive your vehicle, the faster you can also pay it off and be payment free!

If you are planning on selling your vehicle quickly then it would not be so smart in financing a vehicle because vehicles depreciate so quickly. Of course if you have financed your vehicle for a long time you could also face expensive mechanical repairs as well since the warranty does end.

Overall, purchasing a vehicle can be financially stressful and that is why Northshore Acura is here to help! Are you still not sure whether you should lease or buy your next Acura? We will help you make the right decision after taking the time to better understand your needs and budget.

If you're shopping for a vehicle, visit White Rock Honda today.