Lease VS Finance

Should I Lease or Finance my new vehicle?

  Should I Lease or Finance my new vehicle? 

Bolton Honda is committed to getting you in the driver's seat of your new car, and offers a variety of flexible lease and finance options to suit your needs. But these options can often appear complicated, which is why we have broken them down here to help you make an informed decision.

 

Simply put, financing a vehicle means that you are taking out a loan from a financial institution for the full cost of the vehicle, including all its associated fees and taxes. You pay back that loan over a set number of years via monthly installments, with the longer the term, the smaller the payments.

 

On the other hand, leasing offers you the chance to drive your favourite vehicle for only a portion of its cost. This is because you only pay for the amount of time that the vehicle is in your possession, which results in considerably lower monthly payments. The term is also usually shorter, ranging anywhere from 48 to 60 months. Here, calculation of monthly payments depends on the difference between a car's original sale price and its residual value, which is a vehicle's worth after the end of a lease.

 

Who is the vehicle's owner?

 

Financing

 

This is a straight path to vehicle ownership. All you have to do is usually pay an amount as down payment, keep up your installments, and enjoy complete ownership of your car after successful completion of the finance period.

 

Leasing

 

Here, the lending institution remains the legal owner of the vehicle throughout the term of the lease. You do not own the car, but rather pay for using it for a set amount of time. This is why lease payments are lower than finance payments.

 

What about up-front payments?

 
 

Financing

 

A down payment is sometimes necessary when financing a vehicle, and is part of the agreement between you and the lending institution. You can use the trade-in value of your old vehicle as down payment, or utilise any equity to fulfill this requirement. The actual amount to be paid up-front usually depends on multiple factors, including the make and model of the car, your credit score and the lending institution's requirements.

 

Leasing

 

Most of the time, this option frees you from paying any amount up-front. All that is usually required is payment of the first month's installment, the security deposit, the acquisition fees and other related taxes and fees. But you can always customise your lease by opting to pay a down payment, which will work towards reducing your scheduled payments.

 

What about the vehicle's future value?

 
 

Financing

 

Your vehicle's market value will depend on its depreciation over the finance term and on how well it has been maintained throughout its life. Factors that can significantly reduce a car's value include accidents and irregular maintenance. The best way to take care of your investment is to follow all recommended service timelines in your car's booklet, and to always take your vehicle to a factory-authorized repair and service facility.

 
 

Leasing

 

A vehicle's future value should only be considered here if you intend to purchase it during or at the end of the lease term. If that is not the case, you simply hand the car back to the financial institution upon expiry of the lease. However, you have to be mindful of all mileage limits and wear and tear guidelines throughout the lease term or you could end up paying extra upon returning the car.

 

What happens at the end of the term?

 
 

Financing

 

Once you have successfully made all your payments and met all conditions on your contract, the vehicle is all yours to keep. The financing institution will issue you a Lien Release declaring that the car is completely paid off, and will then be yours to enjoy without any scheduled payments!

 

Leasing

 

Multiple options become available to you when you approach the end of your lease term. You can either return the vehicle and close the agreement or return it and lease a brand new car for another term. You can also purchase your vehicle during or at the end of your contract, or trade it in before the lease is over. We can happily customise your lease contract to suit all your needs!

 

Which vehicles are the best to lease?

 

The technique here is to lease vehicles that retain the best book value after the term of the lease. This is because the less a car depreciates over the years, the less you have to pay for its use. Reviewing lease ratings will give you an idea of the cars that retain their value most.

Do you have any questions?

 

Submit the form below or call us now at 1 (866) 938-0764.

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Contact Information

Bolton Honda

65 Pillsworth Road
Directions Bolton, ON L7E 4E9

  • Sales: 1 (866) 938-0764

Hours of Operation

  • Monday: 9 am - 9 pm
  • Tuesday: 9 am - 9 pm
  • Wednesday: 9 am - 9 pm
  • Thursday: 9 am - 9 pm
  • Friday: 9 am - 6 pm
  • Saturday: 9 am - 6 pm
  • Sunday: Closed
See all department hours

Dealership Hours

  • Monday: 9 am - 9 pm
  • Tuesday: 9 am - 9 pm
  • Wednesday: 9 am - 9 pm
  • Thursday: 9 am - 9 pm
  • Friday: 9 am - 6 pm
  • Saturday: 9 am - 6 pm
  • Sunday: Closed

Parts Dept. Hours

  • Monday: 7:30 am - 6 pm
  • Tuesday: 7:30 am - 8 pm
  • Wednesday: 7:30 am - 6 pm
  • Thursday: 7:30 am - 8 pm
  • Friday: 7:30 am - 6 pm
  • Saturday: 8 am - 2 pm
  • Sunday: Closed

Service Dept. Hours

  • Monday: 7:30 am - 6 pm
  • Tuesday: 7:30 am - 8 pm
  • Wednesday: 7:30 am - 6 pm
  • Thursday: 7:30 am - 8 pm
  • Friday: 7:30 am - 6 pm
  • Saturday: 8 am - 2 pm
  • Sunday: Closed