At Willowbrook Chrysler, one of the decisions our clients have to make before acquiring their next vehicle is whether they should buy or lease the car or SUV they're interested in. For sure, each option has its advantages, and the trick of course is to choose the one that fits your particular situation and needs best. Here's a brief rundown of the benefits and drawbacks of financing vs leasing a car in Langley and the Vancouver area, to help you make the right choice when you apply for credit approval. Remember that we have dedicated experts in car financing and leasing at your disposal to provide you with qualified, transparent guidance.
Monthly payments. When you finance a car to buy it, your monthly payments will be higher, because you are financing the entire cost of the vehicle. But at the end of your car loan contract, you own your vehicle outright. Conversely, leasing brings with it lower payments per month (in reality you're paying only for the vehicle's depreciation over the time that you lease), but you do not own your vehicle at the end of the lease contract, unless you decide to buy it outright.
Changing your vehicle. When you finance to own, you can sell or trade in your vehicle at any time you choose. You still will need to pay off the remainder of the car loan, but the money you get from the sale can go towards that. In the case of leasing, you have less freedom. It's possible to end your lease early, but there are charges associated with that, unless for example a dealership looks at your lease and buys it as a trade-in. Willowbrook Chrysler offers lease return services, so don't hesitate to ask us for more details if you currently lease a vehicle that you want to trade in.
Returning your vehicle. Financing a vehicle means that, as mentioned above, you own your car at the end of your finance contract. But that also means it's up to you to sell or trade it in when comes time to replace it. In the case of a lease, you simply return it when the lease period is up and that's the end of your responsibilities.
Maintenance. .except, and this can be a big 'except' for people with families and those who put their vehicle through a lot of wear and tear, that in the case of a lease you are responsible financially for excessive wear that requires repair and cleaning. If you own your vehicle after financing it, you can choose to have those repairs and cleanings done or not (although, you'll surely get more for it when selling or trading it in if you do!).
Customization. You own your car? You can do what you want with it (see point above!). This includes customizing it as you wish. In the case of a lease, though, since you're obliged to return it at lease end in salable condition, any modifications or custom parts you've added have to be removed, at your expense.