What Are you Looking For?

If you are looking to get a new car you have no doubt wondered what the pros and cons are of leasing a car. There are plenty of pros and cons, and the only person who can make the decision is you. Different car payment methods are better for different people. Here are the facts.

Car Leasing Canada Pros

FLEXIBILITY TO UPGRADELOW PAYMENTSWARRANTIEDDOWN PAYMENTS

Flexibility To Upgrade

Leasing a car is a great option should you want to get a new car regularly. It is a great option for those that want to get a new car every three to five years (depending on the lease). When the lease ends you can simply get a new lease on a different car.

Read: How Car Lease Works

Low PaymentsBECAUSE YOU AREN’T ACTUALLY PAYING FOR THE CAR ITSELF AND INSTEAD PAYING FOR USE OF THE CAR, PAYMENTS ARE LOW. ALMOST ALWAYS LEASE PAYMENTS ARE LOWER THAN WHAT YOU WOULD PAY TO FINANCE A CAR. IT’S STILL SMART TO COMPARE PRICES BETWEEN FINANCING AND LEASING THOUGH.

Warrantied

Machines break down and stop working, it’s a fact of life. When you lease a car the company is quite invested in keeping it

running, as such they will provide a warranty on the vehicle. Depending on the company and the lease, the warranty may

come with different terms.

Down Payments

In most cases a down payment won’t be required when leasing a

car. In cases that a down payment is required it will be minimum

compared to that of financing a car.

Car Leasing Canada Cons

MILEAGE LIMITSPLANNING IS REQUIREDBUYBACK PRICESINTEREST RATES

Mileage Limits

One of the downsides of leasing a car is that the company you are leasing wants to keep it in

good enough condition that they can resell it at the end of the lease should you choose not to

buy it. One of the ways they make sure that the car is in the best possible condition is that they place mileage restrictions on how much you can

drive.

Planning is Required

When the lease expires, the lease expires. That means that you have to turn your car in and get a new one. If

you don’t plan ahead to have a new car arranged or decided to buy out your

current car you could be in for having no car available.

Buyback Prices

Despite the fact that a car loses a large chunk of its value when it leaves the dealership the dealer wants

to get the most money out of the car. This is why when your lease ends and you look into purchasing

the car, the prices will be so high. Buyback prices are often not worth the amount that is being claimed. Before performing a buyback ensure that the car is

actually worth the price that is being asked.

Interest Rates

While more people are leasing than previously the interest rates on leases aren’t what they

used to be. Interest rates are higher than they have been in the past. Before signing a lease agreement make sure to shop around for the

best interest rates or you could wind up paying much more than you have to.

Created by:Car Lease Canada

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Website: http://www.carleasecanada.ca/