Finance vs. Lease

Ownership

• Financing: The vehicle belongs to you once it is paid in full and you can keep it as long as you wish to. When financing a vehicle, it is important to consider any costly issues that may arise during your ownership. We recommend add-on Vehicle Protection Plans when you purchase to avoid any unexpected costs during your ownership.
• Leasing: The vehicle does not belong to you and you must return it at the end of your agreement.

Up-Front Costs

• Financing: Costs can include a down payment and registration fee. However, it is possible for these fees to be worked into the loan leaving you with no up-front costs
• Leasing: Costs can include the first months payment on the vehicle, down payments, registration and other fees.

Vehicle Payments

• Financing: Loan payments are typically higher because you are paying for the vehicle in its entirety, plus interest. Any additional fees you may have added onto the loan rather than paying up-front will also contribute to this cost.
• Leasing: Lease payments are typically lower than financing payments. You are only paying for the vehicle’s depreciation for the duration of your lease, rather than the vehicle in its entirety. This amount may also include interest charges and other fees.

Early Termination

• Financing: You can sell or trade-in your vehicle whenever you choose to. The money you receive from the sale or trade-in can be used to pay off your current loan. However, if your loan exceeds your vehicles worth, you may become upside down on your loan. Any remaining balance will have to be transferred to your new loan or paid in full.
• Leasing: The lease can be ended early, but early termination can become costly depending on your lease terms.

Vehicle Return

• Financing: You are responsible for selling or trading in your vehicle when you choose to get a new one.
• Leasing: You return the vehicle at the end of your lease and walk away. However, you can choose to purchase the vehicle which is referred to as a “lease buyout”.

Future Value

• Financing: Your vehicle will depreciate as time passes, but whatever cash value it does hold belongs to you.
• Leasing: The future value of your lease doesn’t effect you. However, you will not have any equity if the vehicle becomes more valuable according to the market.

Mileage

• Financing: The vehicle is yours to put as many or as few miles on it as you wish. If you intend to trade-in sometime in the future, be mindful that less miles on the odometer leads to higher trade value.
• Leasing: Leases typically limit the amount of miles driven yearly. Most often the mileage will range between 10,000-12,000, additional mileage can be added at an additional cost.

Wear & Tear

• Financing: Wear and tear on a vehicle you own is to be expected. The only downfall of this may be a lower payout if you sell or trade the vehicle in the future depending on the damage.
• Leasing: You will be liable for excessive wear and tear on the vehicle beyond the “normal” expectation. One way to prevent these charges is opting into the Excessive Wear & Tear Protection Plan that we offer.

End of Term

• Financing: When you have completed your loan payments, the vehicle is 100% yours. Whatever equity you have gained from your vehicle is yours to keep or put towards your next vehicle purchase.
• Leasing: When your lease contract is up you can either purchase the vehicle, lease another, or choose to purchase another vehicle. The choice is yours!

Customization

• Financing: The vehicle is yours to modify in the way you choose, but be mindful that certain changes may void certain warranties.
• Leasing: Any added customizations must be temporary. Any residual damage you will be responsible for getting fixed.