What is The Difference Between Leasing or Financing a Vehicle?

TORONTO - April 4, 2024 - PRLog -- There are a couple of different payment options when looking for a new car. Some of the most common options include leasing your vehicle or financing your vehicle. If you do not know the difference between the two, not to worry, we are going to discuss them now. The biggest difference between these two options is what your payments cover and what your obligations are. Let us go into more detail on these.

Car Ownership

When you are leasing a vehicle, it is essentially a long-term rental. You do not own the vehicle. At the end of the term, you will have the option to either return it to the dealership or to actually buy it outright. Alternatively, when you finance a vehicle, you do actually own it and are able to do whatever you want with it. You can modify it, sell it, or stay parked in a garage, whatever you like.

Car Down Payment

When you are leasing a vehicle, the down payment includes things like a security deposit, taxes, the first month's payment, the actual down payment, and a registration fee. Whereas a financed car includes things like taxes, a down payment, the cash price, more taxes, and other fees.

Monthly Car Payments

When you have a leased vehicle, your monthly payments are going to be lower. They will cover the cost of depreciation, interest, fees, and other taxes. When you have financed a vehicle and you are making payments, you will have a higher rate due to the whole cars value being included.

Auto Customizations

If you are leasing a vehicle and you technically do not own the vehicle itself, you can not customize it in any way. If you do make any changes, they will have to be removed at the end of the lease term, before you give the vehicle back to the dealership. It will need to be in an original, pristine condition for return. If any damages happen due to your customizations, there will be damage fees you will need to pay. When you finance a vehicle, since you own the car, you are able to do whatever you want and alter it in any way you want.

Read More: https://www.nexcar.ca/blog/leasing-or-financing-whats-the-difference/

How Our Dealership Can Help

Our dealership offers both leasing and financing options on our used vehicles. Go to our website to learn more about our financing options and available vehicles. Contact us if you have any questions.

Nexcar Auto Sales & Leasing
(416) 633-8188
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