Buying vs. Leasing
When it comes to buying or leasing a car the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful. When you buy the new or used car you pay for the entire cost of the vehicle. When you lease the new car, you pay for only a portion of the vehicle’s cost, which is the part you use during the time you are driving it.
YOU OWN IT
Once your vehicle is paid in full it becomes an asset for you. With 24 different lenders across Canada, Palladino Honda is more than equipped to tailor a loan that will meet your car buying needs. We offer fixed-rate loans that are entirely open for pre-payment or payout in full at any time without penalty.
Most of our lenders do not require a down payment of any kind. You can also trade in your existing vehicle to use as positive equity towards your new purchase. We will even look at other trade possibilities such as a motor home, motorcycle, etc.
In most cases we are also more than capable of finding a solution when the amount owed on your vehicle exceeds you’re vehicle’s value.
END OF PAYMENTS
Once you’ve paid off what you owe on your contract, that’s it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.
WHO OWNS IT
You do not own the car when you lease it. You’re paying for the use of the vehicle, but the finance institution that you leased it through actually owns it.
You are required to pay your first payment as well as the air conditioning tax ( $100 + HST ), and the licensing cost at the time of delivery of your vehicle.
Because leases have a residual value, your monthly payment would be lower than on a finance term. At the end of your lease term, you have the option of returning the vehicle or re-financing it through Palladino Honda.
So in summary, one advantage of leasing is a lower monthly payment. Although, there are some mileage restrictions. The advantage of financing a vehicle is that the vehicle belongs to you so you can trade it at any time, as it is now your asset.