When you’re interested in purchasing a new or used vehicle, you can choose to either lease or finance it. These two financial options provide you with different advantages and disadvantages, so it’s important to know the differences between the two so that you can choose the one that works best for your personal situation and preferences. That’s why our financing team at Windsor Mazda has put together this helpful guide so you can learn more about both leasing and financing, including what both entail and the benefits to each! Read on to learn more, and visit us in Windsor, ON, when you’re ready to purchase!
Vehicle financing entails a third party (be it a bank, credit union, or dealership) loaning you the money so that you can purchase the vehicle you’re interested in outright. This is done by signing a financing agreement, which details the term in which you will pay back the loan and the interest it comes with in lump sums (usually around 3 to 8 years), and the payments you will make (including the frequency, such as weekly, bi-weekly, or monthly). When the term is complete, the loan is completely paid off, and you can choose to do whatever you’d like with your vehicle, such as keeping it, selling it, or trading it in for a newer model. During the financial loan term you can also trade in or sell the vehicle, with part of the funds you get from doing so going toward paying off the rest of the loan. It’s important to note that, when considering selling or trading it in, vehicles with higher mileage don’t usually get a higher market value than vehicles with lower mileage, so the less you’ve used the vehicle, the better price you’ll get for it.
Vehicle leasing is easiest to think of as borrowing the vehicle from the dealership. You sign a leasing agreement, which details the term you will pay to use the vehicle for (usually around 2-4 years), the payments you will make (and the frequency of payments, such as weekly, bi-weekly, or monthly), and the maximum mileage you can drive the vehicle for during the term. When the term is complete, you choose between buying the vehicle (at a lower rate due to its depreciated value and the payments you have been making on it) or returning it to the dealership, which gives you the freedom to lease a newer vehicle instead.
Whether you’re thinking about getting a new or used vehicle or want to finance or lease it, our team at Windsor Mazda can help make it happen! With help from our financing team, you’ll know what financial options are available to you for the vehicle you’re interested in, allowing you to make an informed decision that works best for your current needs. Reach out to us if you have any questions regarding financial options for purchasing a vehicle from us, and use the secure form below to pre-qualify for credit today!