Should You Lease or Finance

June 08 2018, Destination Mazda

Should You Lease or Finance

Should You Lease or Finance?

Are you in the market for a new vehicle? Should you lease or should you finance a car? What is the difference between the two options? It's a question that everyone seems to have an opinion about. There are a number of factors that can influence whether you should lease or finance a vehicle. Here are a few things to consider before making your decision.

How much you drive?

The amount of kilometers you put on your vehicle on a yearly basis could influence your decision to lease or finance. Certain lease agreements normally only allow you to put a certain number of kilometers on the vehicle per year and may charge a rate for every kilometer if you go over. Financing may be a better option for those who drive frequently and far. If you decide to lease, read your leasing contract carefully to learn if there is a cap and other restrictions.

What are you using the car for?

While some people view driving as a chore, others view driving a pleasure. If you spend a lot of time in the car and highly value comfort, you may be attracted to models with luxury features such as heated leather seats, efficient climate control, spacious interior, and a high-end entertainment system. Therefore going for a lease may be an affordable way to allow you to drive a higher end model.

Depending on the terms of the contract, at the end of the lease you may incur some additional fees on wear and tear or damages. Therefore pay close attention to your vehicle and set aside a budget in advance. In addition, lease payments can be deducted from your taxes if you use your vehicle for business purposes. Speak with an Accountant to find out more about deduction.

How long you plan on keeping the car?

How many years you do plan on driving the vehicle? If you continually lease a vehicle, monthly payments are lower, but they never end. If you decide to finance a vehicle, payments will end and the car will become your asset. If you enjoy innovative new technologies, seek the latest style, or cannot picture driving the same car for many years, leasing gives you the flexibility to switch your vehicle every few years.

What is your monthly cash flow?

Lease payments usually are lower compared to financing payments on a monthly basis. This is because when you lease a vehicle, you're paying for the depreciation of the car during your term rather than the full cost of the vehicle if you were to finance. Think about your monthly income flow, and evaluate how much money you can put towards a payment.

Both leasing and financing affect will affect your monthly cash flow therefore you should understand the math behind each option and the impact on you. Interest rates, down payments, frequency of payments are all important factors; therefore take the time to research which option works best for you and your situation in the long run.

Contact Us

Other Articles That May Interest You

January 07 2019,

Guest Advisor

Destination Mazda Vancouver currently has an exciting opportunity for a Guest Advisor to join their Sales Department! Full training will be provided! The ideal candidate must demonstrate a passion for customer service, be driven to succeed and be a self-starter with a strong work ethic. What You’ll Be Doing: Sales of new and pre-owned vehicles, ensuring completion of all relevant documentation....
Apply Now!

January 07 2019,

Sales Lot Attendant

Destination Mazda Vancouver has recently promoted our Sales Lot Team to Digital Coordinator & Guest Advisor and now requires a replacement for the Sales Lot Attendant position! This is a path that would be ideal for an individual who is looking to start a career in the automotive industry! What Destination Mazda can provide you: Competitive and above the market compensation rates! Full group...
Apply Now!