Leasing vs Financing in Mississauga, ON

Financial Options for Buying a Vehicle at Whiteoak Lincoln

When you purchase a new or used vehicle, you have two financial options to do so: leasing, and financing. With benefits to both depending on your current monetary situation and preferences, it can be helpful to consider both options to see which works best for you. As such, our financing team at Whiteoak Lincoln has put together this handy guide so you know how each financial option works and what benefits both options have, like how financing lets you own the vehicle outright and leasing typically has lower payments. Read on as we dive right in, and visit us in Mississauga, ON, when you’re ready to move forward with your purchasing decisions!

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What Is Vehicle Leasing?

When you lease a vehicle, the process is somewhat reflective of borrowing it from the dealership. A leasing agreement is put in writing that covers the length of time you’ll be using the vehicle (typically 2-4 years), how often you will make payments and for how much, along with the maximum mileage that can be put on the vehicle while you are using it. At the end of the leasing term you can choose to either buy the vehicle outright at its depreciated value, or return it to the dealership (where you usually lease a newer vehicle instead).

What Is Vehicle Financing?

When you finance a vehicle, a third party, typically either a bank, credit union, or our dealership itself, gives you a loan so that you can purchase the vehicle on the spot. A financing agreement is put in writing that covers the length of time you’ll be paying back the loan and the interest on it for (usually around 3-8 years), as well as how often you will make payments and for how much. At the end of the financing term, the loan is completely paid off, and you can choose whether to keep, trade in, or sell the vehicle. There is also the option of selling the vehicle before the end of the loan, in which case some of the funds from the sale will go towards paying off what is left of the loan. As the vehicle is yours to do with what you will, there is no limit to how much you can drive it while financing. However, vehicles with higher mileage tend to have a lower market value than those with lower mileage, so keep that in mind when you’re considering trading in or selling it.

Benefits of Both Leasing & Financing

Vehicle Leasing Benefits

The main benefit of leasing is that lease payments are usually smaller than financing payments, which makes it easier to get a new or used vehicle to use. For those who want to always have the best features and newest models on the market, leasing also makes it very easy to upgrade to the latest vehicle every few years. The warranty coverage for leases typically also lasts the entirety of the time you’re leasing the vehicle, meaning you don’t have to worry about costly repairs or maintenance work.
Vehicle Financing Benefits

The main benefit of financing, on the other hand, is that you own the vehicle outright, and can choose when and how you use it. While the payments are typically larger than leasing ones, there are often more interest rate deals for financing options than for leasing options, which means you can make the payments easier to manage. For those who don’t have a credit score or have a low credit score, financing can also be a great way to build it up, as all it takes to get good credit is to get your financing payments in on time.

Lease or Finance a Vehicle at Whiteoak Lincoln in Mississauga, ON

At Whiteoak Lincoln, you can finance or lease any new or used vehicle in our extensive inventory. Our financing team can help you find the best financial option to make getting your dream vehicle a reality in no time. Contact us to get the ball rolling, or visit us in Mississauga, ON, to start the buying process today! You can also use the secure form below and apply for credit, which can be helpful to have on hand when you come in to take a look at the vehicles in our inventory.

Leasing vs Financing in Mississauga, ON

Financial Options for Buying a Vehicle at Whiteoak Lincoln

Vehicle Leasing Benefits

Vehicle Financing Benefits

Lease or Finance a Vehicle at Whiteoak Lincoln in Mississauga, ON