Lease Vs Finance




Is Leasing Right for Me?

Leasing is an option that allows you to pay the portion of the vehicle's value you expect to use over a period of time. (Plus a borrowing charge and the applicable taxes.)

What are the benefits of leasing?
       
  • Lease Terms are shorter than most finance terms, so you can drive a new vehicle more often.
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  • No trade-in obligations.
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  • You can drive a more luxurious model or get more features for the same amount you'd pay with financing.
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  • You pay taxes only on your monthly payments.
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  • You are only paying for the portion of the vehicle's value that you intend to use.


How does Leasing work?

When you buy a vehicle using traditional financing, monthly payments are based on the whole value of the vehicle + interest. When you lease a vehicle, your payments are based on the portion of the vehicle you expect to use (+ interest) over the lease term, which can range from 36 to 48 months. 

The up front costs may include the first month's payment, an administration fee or a down payment. 24,000 Km/year is pretty typical for the annual kilometers when leasing. At Boyer's we have low and high kilometer options, and you may buy more kilometers up front, or pay per kilometer over the limit later. Maintenance and repairs are your responsibility, however insurance is required for the full term of your lease and we can protect the vehicle for the term with warranty plans too!
 
Is Financing Right for Me?

Purchase financing is an installment sale transaction between you and your dealer, where you agree to pay back a sum of money you borrow from the bank or automotive financing company. Instead of paying the full amount of the  vehicle's value up front before you drive away in it, you sign a contract stating you will pay back what you owe, over time, plus a borrower's fee - or interest. 

How does Financing work? 

With traditional financing, your up-front costs will likely include the down payment, registration fees and a few admin fees such as licensing. After that, your monthly fees are based on the amount you need to pay for your vehicle plus the interest, all divided by the number of months you and the financial institution decided you have to pay off the loan. During any part of your payment period, you can choose to sell your vehicle or trade it in. When dealing with a trade-in, the value you'll receive to put towards a new vehicle will depend on the amount owning on your vehicle and it's condition. 

The biggest benefit of purchase financing, is that once your payment period ends, you own the vehicle outright! So unlike leasing back-to-back, purchase financing is a way for you to pay for a vehicle over time with the end-goal of having no vehicle monthly payments! If you're someone who plans on taking good care of your vehicle and keeping it in tip-top shape by keeping up with the maintenance schedule for years to come, this choice is for you!