Leasing vs Financing in Windsor, ON

Financial Options for Buying a Lexus at Lexus of Windsor

When you buy a vehicle, you have two options when it comes to financial choices: leasing, and financing. These two options have their strengths and weaknesses, and depending on your current financial situation, one can be more appealing to you than the other. As such, it’s important to walk into a dealership knowing how both leasing and financing works so that you can choose the best option for you that will be easy to pay off over time.

Learn more with our financing team at Lexus of Windsor as we go over the key differences between leasing and financing a vehicle, as well as the benefits to both options below!

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Leasing a Vehicle

When you lease a vehicle, it’s similar to borrowing the vehicle for a set amount of time. Upon signing a leasing agreement, you pay the dealership to use the vehicle for a term, usually between 2-4 years. When the term is up, you pick from either buying the vehicle outright by paying the vehicle’s depreciation, or returning the vehicle to the dealership. Vehicle leasing usually has a set mileage limit, which means you can only drive the vehicle a certain amount before the end of the leasing term.

Financing a Vehicle

Financing a vehicle involves borrowing money from a third party, typically either a bank, credit union, or the dealership itself, which is then used to buy the vehicle outright. This gives you ownership of the vehicle, and means that during the term set by the financing agreement (typically 3-8 years), you pay off the loan to the third party. When the financing term is over, you’ve successfully paid off your loan and the agreed-upon interest rate, and can choose what you wish to do with your vehicle (you can even trade in or sell it earlier, and use the funds from such to pay off the rest of the loan). Financing a vehicle means you now own the vehicle, which means you can drive it however much you want, though it should be noted that vehicles with higher mileage tend to get a lower market value when you try to sell them compared to the same vehicle with lower mileage.

Top 3 Benefits for Both Leasing or Financing

car-buying

Leasing

1. Your payments are usually lower

2. You can upgrade to a newer vehicle easily every few years

3. You typically can get warranty coverage for the entire lease term

Financing

1. You own the vehicle outright

2. Interest rate deals are more common on financing options

3. You can build your credit score by making payments on time

Lease or Finance a Vehicle at Lexus of Windsor in Windsor, ON

Our financing team at Lexus of Windsor is ready to help you finance or lease the vehicle of your dreams! We’ll lead you through our new and used inventories, find the perfect vehicle for your driving needs, and then match the financial option to you that works best for your budget and planning. Reach out to us or drop by and see us in Windsor, ON, to get started, and use the secure form below to apply for credit today!