Finance vs. Lease

Are you looking to finance or lease a new or used vehicle in Scarborough, and the GTA?

We’ve got a few options when it comes to purchasing a new or used vehicle at Agincourt Nissan. If you are deciding between purchasing a new car or financing a lease, there are some options to consider. We’ve got a few tips that will help you understand the details of purchasing versus leasing.

When you purchase the vehicle you pay the full cost of the vehicle (either up front or financing over time) and take over official ownership. When you lease, you only pay for the portion of the vehicle during the time that you drive it and in result don’t own the vehicle. If you are interested in buying or leasing a vehicle, please contact one of our sales team at +1 (416) 291-1188.

Who Owns It

When you purchase a vehicle, whether you finance or pay with cash it’s yours. If you’re financing, you will have to meet the obligations the lender requires and make your monthly payments. As the owner of the vehicle, you are responsible for any upkeep or any other costs associated with your vehicle. You can estimate your monthly payments using our payment calculator at the end of this article!

Up-front Costs

If you are financing a vehicle, a down payment may be required. You can trade-in your current vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score. You can save time and apply for financing online using our online finance application.

Future Value

The value of your vehicle is mainly dependent vehicle maintenance. While there are a variety of other factors, scheduling regular maintenance with Agincourt Nissan is an easy way to protect your investment.

End of Payment

If you are financing, once you have paid off what you owe on your contract, you retain 100% ownership. The lending institution will send you documentation as proof that the vehicle is completely paid off and you will no longer have to make payments.

Who Owns It

If you decide to lease a vehicle, you are deciding not to take ownership. The dealership you leased the vehicle through is the owner. This is why monthly lease payments are less than finance payments. You are paying for the use of the vehicle during the time that you have it instead of the entire cost.

Up-front Costs

Leases often do not require any type of a down payment. You only require first month’s payment, a security deposit, the acquisition fee and any other applicable taxes and possible fees. However, similar to financing, if you want to lower your monthly payments you can make a larger down payment an initially.

Future Value

In most leases you don’t end up owning the vehicle so you don’t have to worry about selling it at the end of your term, that’s the financial institution’s job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.

End of Payments

Most people return the vehicle at the end of the lease term, but you can also purchase it during your lease or at the end. You also have the option of trading in your vehicle before the lease is over and switch to a different leased vehicle. Just ask us about these different options available to you!

Best Vehicles to Lease

The best vehicles to lease are those with the highest value after your lease term since they depreciate as you pay less. Review the lease ratings and speak to our knowledgeable staff to see which vehicles retain their value and would be a good choice for you.