Low-Percent Financing and Leasing Options in Port Coquitlam
What Is Leasing?
The choice between leasing and auto financing depends on what you plan to use a vehicle for. While ownership has benefits, so does leasing. It makes it easier to upgrade to a new vehicle when your lease is over and you never have to worry about your warranty running out.
Leasing vs. Financing: When Does Leasing Come Out Ahead?
1. Lower Initial Cost
Unlike a car financing agreement, leases often don’t require a down payment. You only have to pay the first month’s payment, and a possible security deposit.
2. Lower Monthly Payments
If you are budget conscious but want to get the most for your money, leasing makes payments affordable. As a lessee you are only paying for the value of the vehicle used instead of the full value, so payments are significantly reduced depending on the term you choose. A vehicle that may not fit into your monthly budget on a finance contract may be attainable on a lease.
3. No Trade-in Hassle
The lease-end value of the vehicle is determined before you sign the lease. If the vehicle is worth less at the end of the contract, the lease company assumes full responsibility. Unlike financing, you will never be “upside down” at the end of your contract. That means your options for a new vehicle remain open.
4. Shortened Trading Cycle
You can upgrade to a newer vehicle more often with a lease. You also save money on vehicle maintenance, something that tends to be most costly in the fourth and fifth years of ownership. Leasing allows you to completely avoid this costly period of a vehicle’s life.
5. Tax Benefits
Unlike in purchasing or financing a vehicle where you pay tax on a vehicle’s entire value up-front, leasing allows you to pay the taxes on your monthly payment. Leasing may also be a better option for small business owners and those who are able to submit vehicle tax deductions.
What Happens at the End of the Lease?
– Return the vehicle and lease another one the suits your current needs.
– Purchase the vehicle for the pre-established price.
– Return the vehicle to the leasing dealer and “walk away”
What About the Kilometers?