As many have you seen from our Facebook page, we have been helping our members pick their next vehicle, along with arranging really great pricing from our dealer partners. A common question we have been counselling our members on is whether or not to lease their new car. There is no universal answer to this question, as every person, car, and car deal is unique.
A lease is a different way to finance a car. With a lease you don’t own the car – you are making a monthly payment (which can span anywhere from 12 to 60 months) to use that vehicle. Along with making the payments, you are committing to maintain that vehicle based on the manufacturer’s maintenance requirements, and return the vehicle in a saleable condition at lease end (so if there are scratches, dents, bald tires, or worn out brakes – it’s your job to get that fixed). As the Lessee, you have the right to purchase the vehicle at the lease end.
An important consideration with leasing is to remember that you are paying for depreciation on a new car when it is the most expensive. Those that enjoy the luxury of a brand new car every couple of years with lower payments compared to traditional financing can end up paying much more in the long run as you don’t ever build any equity in your car.
Some people have had really great experiences leasing, while others have had frustrating and costly experiences – as we explained earlier, every situation is unique. The Ontario Motor Vehicle Industry Council has a quick rundown on the Pros and Cons of leasing.
Need some help buying or leasing your next new vehicle? No matter what car you need we can help get you a great deal. Contact Robert Ostfield at [email protected] or 1 (888) 657-3296 and he would be pleased to help.