Should you buy or lease your vehicle?

This question is probably one of the first to ask yourself when time comes to decide how your next vehicle will be financed.

Even if both options are considered as financing, they differ by their benefits and disadvantages.

If you answer yes to most of these questions, you should probably choose to lease your car. However, if your answers are negative, financing (buying) could definitely be your best option.

  1. You prefer to change your car every 3-4 years.
  2. You enjoy driving a new car.
  3. You drive 20,000 to 25,000 km a year on average.
  4. You like your car to be under warranty.
  5. You want to avoid any kind of trouble related to used cars.

Before making up your mind, allow me to tell you about the benefits and inconveniences of car rental.

Benefits of leasing a car
  1. If your car is severely damaged, you will not loose any money when you give it back at the end of your contract, even if your car has lost a lot of its value.
  2. You can even have a new car by forking out less every month
  3. Many options are available when your lease is over: buy the vehicle, give it back or sell it.
Disadvantages of leasing a car
  1. It is much harder and costly to break a leasing contract than a normal loan.
  2. Leasing restricts the use of your vehicle (traveling outside of the country, modifying the car, etc.)
  3. The vehicle must be given back in a good state at the expense of the lessee (considering what the manufacturer considers as normal wear and tear).
  4. If you exceed the mileage limit and do not wish to buy the vehicle, a fee will be charged at the end of the lease.

What you must keep in mind is that no matter what type of financing you choose, it remains a debt. Whether leased or bought, your car looses value and the person who uses it must bear the cost.

Take some time to evaluate your finances and your needs and ask the right questions to your car broker. He will guide you properly.

Lorraine Lévesque
Automobile broker

Lorraine Levesque has been an automobile broker for 12 years. Consumers are familiar with the concept of mortgage brokers and real estate brokers but unaware that a car broker can find a new or used vehicle for them. This approach may save time and money as the broker knows how to negotiate with the suppliers. This service is available to both individuals and businesses all across Quebec, in every city. This is a popular service for discerning consumers, especially those who lack the time or those who lack negotiation skills...! Visit her Facebook page or her website for more information.

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