Finance vs. lease:
Which is better?
If you prefer to own your vehicle outright and for the long term, financing will be your best option. If you like driving a new car every few years, and your lifestyle may change, consider leasing. We’ll help you make the right decision for you. Here are some of the pros and cons.
Financing
You want
- To build up trade-in or resale value
- To be payment-free after paying off a loan
- To customize your car
- To drive more than average miles
You don't mind
- Repair costs after your warranty has expired
- The possibility of higher monthly payments than leasing
Leasing
You want
- To drive a new car every two or three years with the latest features, always under warranty
- The possibility of lower monthly payments
You don't mind
- A limit to the number of miles you can drive each year
- No problem properly maintaining your car.
End-of-lease options
When your lease ends here are your options:
- Return the vehicle to our dealership. We can help you find a new car to buy or lease
- Extend your lease. Contact us to discuss this option and the terms of a new lease
- Buy the car. Most leases have an option to buy at the end of the agreement. The price will depend on your remaining payments and your vehicle’s residual value.
Both financing and leasing have their benefits. Whatever option you choose, our professional finance managers will go through all the details and answer any questions regarding warranties and other financing options to protect your investment. We look forward to meeting with you soon to discuss your needs and options!
How leasing and financing affect your insurance
Insurance
Insurance rates are based on where you live, what you drive, and how you drive. You will pay the same for insurance, whether you buy or lease. Just be sure to let your insurance company know you’re leasing.
Financing or leasing
Financing or leasing both mean that someone is holding the interest on that vehicle: a bank, a dealership, etc. The name of the leasing company or the financier must be on your insurance policy. This process is in place so that a lender’s investment is protected.
Accidents
When a car is in an accident or written off, the finance or leasing company are paid first. After that, you will receive a payment if your car is worth more than what you owe. If you owe more than the vehicle is worth, gap insurance comes into play to cover those costs. Contact your insurance company for details.
Leasing vs financing in Canada with bad credit
A bad credit score might mean that you can’t lease or borrow. But Go Auto gives customers a much higher chance of getting approved. Our in-house finance team can finance your loan--with our own money--even if the banks turn you down
