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19820 Fraser Hwy Langley, BC V3A 4C9 | 604-514-1895

Finance VS Leasing

Financing vs. Leasing - What’s Best for You?

Every month the Original Applewood Motors sees hundreds of customers, and many come to us with the same question: what’s the difference between financing and leasing?

Sadly, most other dealership don’t do a very good job of explaining the difference between these two types of financial plans - and which one works best for your situation. Thankfully Original Applewood Motors has put together this simple breakdown of the two so you have a better idea which one works best for your situation.

  Leasing Financing
You Want
  • A new vehicle every two to three years
  • A lower monthly payment
  • The latest vehicles and the protection of a warranty
  • Complete ownership of the vehicle
  • To build that vehicle’s resale or trade-in value
  • The ability to customize the vehicle
You Don’t Mind
  • Trading or selling your vehicle privately
  • Building ownership equity
  • Paying repair bills once the warranty expires
  • Higher monthly payments
You Have
  • A stable, predictable lifestyle
  • To drive an average number of miles each year
  • No problem maintaining your vehicle
  • To drive an above-average number of miles each year
  • Possible lifestyle changes in the future

 

In the end, if you’re looking to constantly drive the latest and greatest vehicles for a shorter period of time, before returning them to upgrade to the next vehicle - then leasing will work best for your situation.

On the other hand, if you’re looking to own your vehicle but simply don’t have all the cash to pay for it outright, then financing is the better option. Not only will that vehicle be yours to keep once the financing is paid off, but you can customize it to your heart’s content! Either way, contact our Finance Department and our team of financing specialists will be more than happy to help set up your financing or leasing plan.


Which is Cheaper?

This is another question we get asked on a consistent basis, and the answer is - it depends. Leasing is typically cheaper in the short term thanks to lower monthly payments and fewer initial fees. However, leasing is designed for you to ‘own’ the vehicle only for a few years, meaning that over time financing becomes less expensive as you pay off the vehicle.
In the end, which financial plan is cheaper end up being determined by what you intend to do with the vehicle and how long you intend to own it for. If you’re still not certain which would work best for you, contact our Finance Department today and we’ll be happy to help you make a decision!