Lease vs Finance

 

There are a number of things to consider in the decision to lease or finance a vehicle. A Toyota lease gives you a number of advantages, including lower monthly payments compared to the cost of financing a vehicle. But financing gives you the benefits of eventually owning the vehicle for yourself! What exactly are the differences between financing vs. leasing? 


Advantages of Leasing

  • A lease will generally give you lower monthly payments and fewer up-front costs than financing the same model would; even low-percent financing may have higher payments than with a comparable lease
  • You can upgrade to the newest model every few years, often without having bigger payments
  • When you lease a vehicle, you typically pay less tax on a lease, as you only pay tax on the monthly payment, as opposed to the full purchase price of a vehicle
A number of options are available at the end of the lease:
  • You can return your vehicle
  • You can lease another vehicle
  • You can finance or buy your vehicle
If you choose to purchase your vehicle at lease-end, there are a number of financing options offered here at Campbell River Toyota.

 

Advantages of Financing

  • When you finance a vehicle, you have the freedom of driving unlimited kilometres, and the ability to equip it with your desired aftermarket accessories
  • You get vehicle equity
  • There are no penalties for excess wear and tear
  • Financing has a lower carrying cost than leasing, as with a lease you are not repaying the entire value of the vehicle