Car leasing has become an increasingly popular option for Canadian car buyers in recent years. With the many benefits that come with leasing a car, it’s easy to see why. However, before you make a decision about whether or not to lease a car, it’s important to understand the pros and cons of this type of car financing.
Pros of Car Leasing:
- Lower Monthly Payments: One of the biggest advantages of car leasing in Canada is that it typically results in lower monthly payments than purchasing a car outright. This is because you’re only paying for the portion of the car’s value that you use during the lease term, rather than the entire value of the car.
- Access to the Latest Models: Leasing a car also allows you to access the latest models and features without having to pay the full price. This is because the lease term is typically shorter than the life of the car, so you can always upgrade to a newer model when your lease is up.
- Reduced Maintenance Costs: Car leasing also comes with reduced maintenance costs, as the car is typically still under warranty during the lease term. This means that any necessary repairs or maintenance will be covered by the manufacturer.
- Flexibility: Leasing a car also provides greater flexibility, as you can choose from a wide range of lease terms and mileage options to suit your needs.
Cons of Car Leasing:
- Limited Mileage: One of the biggest disadvantages of car leasing is that it typically comes with a mileage limit. If you exceed this limit, you’ll be charged additional fees. This can be a major drawback for those who do a lot of driving.
- Limited Customization: Leasing a car also means that you’ll have limited options for customization. Many leasing companies prohibit any modifications or changes to the car, as it will be returned to the manufacturer at the end of the lease term.
- No Ownership: Another major disadvantage of car leasing is that you never actually own the car. This means that you’ll never build any equity in the car and you’ll never be able to sell it.
- Additional Fees: Leasing a car also comes with additional fees, such as a security deposit, disposition fee, and possibly even an early termination fee. These fees can add up and make leasing a car more expensive than purchasing one outright.
Ultimately, the decision of whether or not to lease a car is a personal one that depends on your individual needs and circumstances. Before making a decision, it’s important to weigh the pros and cons and consider factors such as your budget, driving habits, and long-term goals.
Stephen Johns is the founder of CarleaseCanada.ca A website that allows families to travel inexpensive or free. In 2014, when he was faced with an expense-intensive Lake Tahoe extended family reunion He embarked on his first adventure in the world of rewards on credit cards. The following summer, using a handful of carefully-planned credit card applications, he had used 15000 Ottawa Rapid Rewards points to pay for eight tickets to cross-country flights. He founded Points With a Crew to assist others to realize that due to rewards from credit cards your next family trip could be closer than they thought.