Should I Buy Or Lease My New Car?

Leasing VS. Financing 

Leasing and Financing are two great options for you when purchasing a vehicle . Both give you a new vehicle, with varying flexibilities. When weighing your options think of things like:

  1. How long do I intend to keep this vehicle? Do I have a history of wanting a new car every 2-4 years? Or can I see myself keeping the same car for many many years?
  2. How long do I commute each day to work?
  3. How long do I want to commit myself to a monthly vehicle payment?

Is leasing right for me?

Leasing is an option that allows you to pay the portion of the vehicle's value you expect to use over a period of time. (Plus a borrowing charge and applicable taxes.)

What are the benefits of leasing?

  • Lease terms are shorter than most finance terms so you can drive a new car more often!
  • No trade-in obligations.
  • You can drive a more luxurious model or get more features for a comparable amount of money if you financed.
  • You only pay taxes on your monthly payments
  • You are only paying for the portion of the vehicle's value that you intend to use

How does leasing work?

When you buy a vehicle using traditional financing, monthly payments are based on the whole value of the vehicle plus interest. When you lease a vehicle, your payments are based on the portion of the vehicle you expect to use (plus interest) over the lease term, which can range from 36 to 48 months.

The up front costs may include the first month's payment, an administration fee or a down payment. 24,000 kilometers per year is the average amount your agreement will account for. There are always options to extend your yearly allowance of kilometers for a price. Make sure to talk this over with your Sales Representative during the shopping and buying processes.

At Boyer's we have a low and high kilometer option, and you may buy more kilometers up front, or pay per kilometer over the limit later. Maintenance and repairs are your responsibilities, however insurance is required for the full term of your lease. We can protect the vehicle for the term with warranty plans too!


How are my Monthly Lease Payments Calculated?

You are only paying for the depreciation of the vehicle over the lease term, along with the other charges (i.e. monthly tax and borrowing charges).
Is Financing Right For You?

What is Purchase Financing?

Purchase financing is an installment sale transaction between you and your dealer whereby you agree to pay the amount financed, plus an agreed-upon finance charge, over a period of time.
Most banks, trust companies and automotive financing companies offer traditional financing.

How does financing work?

With traditional financing, your up-front costs will likely include a down payment, registration fees and other charges (such as licensing).
After that, your monthly payments are based on the amount you need to finance, plus interest, over a set period of time.
At any point during your payment period, you can choose to sell your vehicle or trade it in for a new one.
Once your payment period ends, you will own your car outright.
Fixed vs. variable interest rates
When choosing to finance, it's important to understand the difference between fixed and variable interest rates.

Fixed interest rate:


Just like it sounds, your interest rate is set for the full term of your loan.Fixed interest rates are often set higher than variable interest rates (at least initially) but they protect you from market fluctuations.
Variable interest rate:

A variable interest rate means that if interest rates drop, you benefit. But if they rise, you either pay more or extend your loan term.
Fortunately, many financial service providers will let you switch between the two without a penalty.
The benefits of purchase financing
When you purchase finance a new GM vehicle:

  • You have the freedom to drive your vehicle for more than just a few years.
  • You don't have to worry about the possible penalties of a lease (i.e. excess wear and extra mileage charges).
  • You can customize your vehicle and alter its appearance.
  • You own your vehicle at the end of your contract term.

Plus

  • You have the flexibility to sell or trade in your vehicle at any time during your contract term.
  • Your payments can be spread over a longer period of time, you can make lower monthly payments than you would if you had chosen to lease.
  • You can get loan pre-approval from your lender before you go car-shopping, which means you'll know in advance how much you can spend and what your monthly payment will be.