How to Lease a Car With Bad Credit

When it comes to purchasing a luxury or exotic vehicle, deciding between leasing vs. financing can be a crucial decision. Should you lease or finance a car? Realistically, both options offer a unique set of advantages and pitfalls. This makes weighing your options regarding leasing vs. financing based on your lifestyle, preferences, and financial situation even more important. 

Learn about the differences between leasing vs. financing a luxury vehicle, and which option might be the best choice for you when it’s time to buy. First, let’s explore the pros of leasing vs. financing a luxury or exotic car. 

Leasing a Luxury Car

Should you lease or finance a car? Ultimately, the decision is based on your personal assessment after weighing several important factors. Considering the pros and cons of leasing vs. financing will help make the decision a little easier. Some of the benefits of leasing include: 

Pros:

1. Lower Monthly Payments: Leasing in Calgary typically requires lower monthly payments compared to financing, as you are only paying for the vehicle’s depreciation during the lease term.
2. Access to Newer Models: Leasing allows you to drive a new luxury car every few years, providing access to the latest technology and features.
3. Lower Repair Costs: Since most leased vehicles are under warranty, you are often protected from expensive repair bills for major issues.
4. No Resale Hassle: At the end of the lease, you can simply return the car to the dealer without worrying about selling it or negotiating a trade-in value.

Cons:

1. Mileage Restrictions: Lease agreements typically come with mileage restrictions, and exceeding these limits can result in costly overage fees.
2. No Ownership Equity: Unlike financing, leasing does not build any equity in the vehicle, meaning you won’t have any value to apply toward a new car purchase.
3. Limited Customization: Most lease agreements restrict modifications and customization, limiting your ability to personalize the vehicle to your liking.
4. Potential Fees/Charges: Lease agreements often include fees for excessive wear and tear, early termination, and other factors, which can add up over time.

Financing a Luxury Car

The alternative to leasing a luxury car is financing. When you finance, you end up owning the vehicle at the end of the finance term. Should you lease or finance a car? Let’s take a look at the benefits of the latter: 

Pros:

1. Ownership Equity: Financing allows you to build equity in the vehicle over time, which can be used towards future purchases or as a trade-in value.
2. No Mileage Restrictions: Unlike leasing, financing a car allows you to drive as many miles as you want without worrying about overage fees.
3. Ability to Customize: Since you own the vehicle, you can customize it to your liking without any restrictions from the lender.
4. Lower Long-Term Cost: While monthly payments may be higher than leasing, financing a car can be more cost-effective in the long run, especially if you plan to keep the vehicle for an extended period.

Cons:

1. Higher Monthly Payments: Financing typically requires higher monthly payments compared to leasing, as you are paying for the full purchase price of the vehicle.
2. Depreciation: Luxury cars often depreciate rapidly, meaning you may owe more on the loan than the car is worth if you decide to sell it before the loan is paid off.
3. Responsibility for Maintenance: As the owner, you are responsible for all maintenance and repair costs once the warranty expires, which can be expensive for luxury vehicles.
4. Potential for Negative Equity: If the car depreciates faster than you pay off the loan, you may end up owing more than the car is worth if you try to sell or trade it in.

Should You Lease or Finance a Car? 

Ultimately, the decision to lease or finance a car rests on a few important elements. Leasing a car has fantastic benefits for Woodbridge drivers who generally prefer to have the latest technology and features in a vehicle. You can stay up to date with the current model year additions to your favourite luxury and exotic brands. Also, if you move frequently for work and don’t want to commit to a vehicle long-term, you might find it advantageous to lease a vehicle. Finally, leasing eliminates many of the maintenance costs associated with buying outright, and depreciation is a non-factor since you don’t have to contend with selling the vehicle when you decide to upgrade. 

Lease Your Favourite Exotic or Luxury Vehicle at Pfaff Leasing

If leasing a vehicle sounds like the more attractive option, Pfaff Leasing has an extensive gallery of luxury and exotic options. We also offer commercial options if driving is a regular part of your professional life. We serve three major areas in Canada, making it convenient for you to lease your favourite vehicle no matter where you are. For more information, contact us, and we’ll be happy to assist.