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Leasing vs. Financing

  

Once you have found your perfect vehicle match and organized a loan, the final decision arises: leasing or financing.


Breathe easy knowing there is no "right" or "wrong" solution to payment, rather pros and cons for each unique buyer. A decision can be made by evaluating personal financial situations, preferences and driving habits.


Let's break down this decision by answering some questions most buyers have, and should ask themselves upon car shopping.


First, what is the difference between leasing and financing?


Financing is paying the total purchase price of your vehicle over time, in consistent monthly payments. This makes it more manageable to afford the purchase of a car, with the end result being ownership of your vehicle.


Leasing is making consistent payments, (bi-weekly, monthly) to drive and keep the vehicle for a long term amount of time. Included in the lease payment is the cost to use the vehicle and the amount of depreciation occurred as the vehicle is in your possession. At the end of a lease term, you must return the vehicle to the dealer, or utilize the option to buy. You can do this by paying out the residual value, or "value remaining" on the vehicle you were leasing.

 

 

  

 

Now that you fully understand the differences between the two options, In the end, choosing to finance or lease should be based off your driving needs, payment plans and personal preferences.

Contact

Sherwood Park Chevrolet

500 Premier Way
Directions Sherwood Park, AB T8H 0R5

  • Sales: (780) 416-2438
  • Service: (587) 805-0964
  • Parts: (587) 805-1963