Option Between Lease and Purchase of Vehicle

Deciding whether to lease or purchase a truck is an important consideration for vehicle buyers, and there is no, one size fits all, answer. Deciding the way forward depends upon a person’s lifestyle, driving habits and most importantly the availability of finances to purchase the vehicle. We help people decide and provide both used truck leasing in Calgary and new truck leasing in Calgary.

With leasing, you are effectively renting a vehicle for a specified period of time, usually for two to four years, and that too without conditions. While in the case of buying, you own the vehicle from the moment you drive it off the dealership lot. There is also an option of vehicle loans that run between two and eight years.

There are advantages associated with leasing and buying. With leasing, consumers typically enjoy a lower monthly payment, the good thought of driving a new vehicle every two to four years, predictable cost of ownership while driving a vehicle under warranty and the possibility of writing off a portion of the lease payments on taxes. These do make a person think about availing of the options from the choices that he has. With a leased vehicle, you only tend to make the part of the payment of the vehicle that you are using and not the balance or the end value of the vehicle that is left over when the term of the lease comes to an end, an occurring in three or four years.

Most of the legal lease agreements that are normally made are based on driving approximately 24,000 kilometres per year and can be structured to allow for additional distance covered as well, but the monthly payments would also need to be changed accordingly to consider for the extra mileage. Monthly Lease payment is also dependent on whether there is a trade-in or down payment, the interest rate or applicable fees associated. It is important to consider that if a leased vehicle has physical or mechanical damage, or it has been driven for more distance than highlighted in the lease agreement, in that case, the financial costs may accrue if the lessee chooses not to go in for the purchase of the vehicle.

A critical thing to be considered is whether or not to opt for purchasing the vehicle at the termination of the lease agreement. There are other also that need to be considered on priority, however, in the scenario when the vehicle is worth more than the residual value, one may consider buying it, and if it’s worthless, the person may consider to hand it back. There are multiple sites available to assess the market value of the vehicle.

In the case of a need to cover considerably more distance than 30,000 km in a given year, then opting financing may turn out to be a better option. If you purchase that same vehicle with the same rate of interest, you are responsible for the entire cost of the vehicle up front, in addition to finance charges and applicable fees. That particular cost is determined by the sale price of the vehicle, the cost of borrowing, licensing fees and the value of the trade-in, in case that is applicable.

 People choose to finance over leasing for different reasons that include a maximum choice of people, high-mileage drivers, there is a plan to keep the vehicle for a long duration, there is no worry about repair costs after the factory warranty have expired,  the cash flow is not a concern, the status of driving a new car is not relevant, else there is sufficient cash to cover the finance price. Given these options, a person can choose to opt for buying or leasing. We have experts who can guide the people in the best manner and make them go in for the best option of leasing available in Canada.