Should I Buy or Lease a Car?

Considering whether to buy or lease a car? If it’s been some time since you’ve navigated the car market in greater Toronto, the distinctions between leasing and buying might be a bit hazy. At Pfaff Leasing, we specialize in leasing and elucidate the advantages of this option to customers like you daily. Below, we’ll explore the benefits of leasing vs. buying and why it might be the right choice for you.

Is Leasing a Car a Good Idea: The Benefits of Leasing 

So, what is leasing? When drivers in Calgary opt to lease, they essentially rent the vehicle for a set period. Although they don’t accrue equity or have the option to sell the car, their monthly payments are based solely on the depreciation that occurs during the lease term. This typically results in lower monthly payments and a smaller down payment. Additionally, leasing often entails reduced sales tax obligations. Another perk is flexibility: at the end of the lease term, you can renew the lease, exchange the vehicle, terminate the lease, or finance the remaining value.

The Benefits of Financing 

Should you buy or lease a car? To answer that question, let’s now turn our attention to financing. When you choose to finance, you take out a loan on the full value of the vehicle to own it. The full value of a vehicle will be more than the depreciation over a temporary lease period, so expect to make a larger down payment, pay more sales tax, and make bigger monthly payments. However, you’ll be able to sell the car at any time and recoup thousands of dollars you’ve invested into the principal of your loan. 

Is Leasing Better Than Financing?

Is leasing a car a good idea? We discussed the advantages of leasing a car, but that still may leave you wondering, is leasing better than financing? The question of whether leasing is superior to financing hinges on individual preferences in Woodbridge, financial circumstances, and driving habits. Leasing often appeals to those seeking lower monthly payments and minimal upfront costs, as lease payments typically only cover the vehicle’s depreciation during the lease term. 

Additionally, leasing provides the flexibility to upgrade to newer models more frequently, without the burden of long-term ownership commitments or concerns about depreciation.

Explore Leasing vs. Buying With the Pfaff Leasing Financiers

Still unsure whether you would prefer leasing vs. buying? Reach out to Pfaff Leasing at 289-236-0357. Our financing specialists are dedicated to guiding our Woodbridge residents through their choices and assisting them in determining the best fit for their budget. In the meantime, explore our array of vehicle specials to uncover potential savings!