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When shopping for a new car, the choices are infinite. After spending so much time narrowing things down and selecting the perfect vehicle, now you are faced with yet another decision. Buy or lease? Both options offer an assortment of benefits but which is the better choice for you?
Many factors enter into determining whether leasing or financing is the right decision. How much cash you have on hand, your credit score, how long you plan to keep the vehicle and how much you drive are all very important. At Comox Valley Toyota Loans, we want you to have all of the information you need to make an informed decision. Here are a few of the most commonly asked questions, and answers to help you find the best option for your situation.
Which is less expensive, leasing or purchasing?
If you lease a new vehicle, you'll enjoy lower monthly payments and a shorter term, but once the term ends you must return the vehicle and begin the cycle again or keep the vehicle and arrange to buy out the remaining balance which could be substantial. Purchasing a vehicle may have slightly higher monthly payments, stretched over a longer term, but once the term is complete, you will own the vehicle free and clear; enabling you to continue to drive it payment-free. Purchasing tends to be more cost-effective in the long run.
Can I sell my vehicle during the finance or lease period?
If you have purchased a vehicle, it is yours. Even if there is an outstanding loan on it, you are free to sell it at anytime and pay off the balance owing. When you lease a vehicle, you have committed to a term of 2, 3 or maybe even 4 years and cannot easily sell the vehicle.
What about mileage?
A vehicle lease clearly outlines the terms of the agreement, including allowable mileage. Should you exceed the mileage allowance, you will need to pay a set amount per kilometre in excess of the agreed amount. If you purchase a vehicle, you can drive as much as you'd like, worry free.
How does my credit score factor into things?
Typically, you'll need a great credit score to lease a vehicle, especially if you want to qualify for a "no down payment" or lower-interest lease incentive. Purchasing a vehicle on the other hand, is much easier, regardless of your credit score. Companies such as Comox Valley Toyota Loans offer flexible options for vehicle financing, including second and third-chance financing. This is a great way to not only acquire vehicle financing, but to build up your credit rating at the same time.
At Comox Valley Toyota Loans, you can drive off in the vehicle of your choice regardless of your credit situation. An experienced credit advisor will work with you to determine whether leasing, traditional financing, or second / third-chance vehicle financing is the right move for you; and put you behind the wheel of a quality Toyota vehicle.