Deciding whether to lease or finance a new car is a dilemma car buyers face quite often. Car shoppers have long seen leasing as nothing more than a complicated style of renting due to the lack of ownership of the vehicle and restricted mileage. However, there are several favourable perks to leasing a car. Lower monthly payments and in often cases, better cash incentives are starting to win over consumers across Canada. Sacrificing mileage for lower monthly payments is a tradeoff that many consider, especially if you live in a big city, such as Toronto or Vancouver and drive a short distance in your day to day life.
Purchasing a vehicle is one of the largest purchases one makes, ergo, it’s not something one needs to rush into. Leasing a vehicle provides you with the freedom of knowing that you are not committed the vehicle at hand if you are not fully satisfied with it. Leasing is especially favourable amongst car enthusiasts who look to have the newest and best model without spending an arm and a leg. Depending on your individual needs, leasing may be the best option for you when it comes to your next new vehicle.
We’ve gone ahead and derived 3 money saving tips for you to apply on your new lease, check it out!
Figure out what leasing is all about
Before being able to snag a great deal on a lease, you need to know the difference between leasing and financing a brand new car.
The common misconception about the difference between the two is that financing allows you to own a car while leasing doesn’t. This isn’t particularly true, a financer does not completely own the car, it is only theirs once it is paid off in full, including interest. This is even more apparent when the loan term is 60,73 or 84 months long, meaning the vehicle is not yours until 5,6 or 7 years later when the car has depreciated and old enough to sell.
Leasing, however, does not entail you to become the owner of the vehicle but it does let you drive the vehicle for enough time to fall in love and then out of it, on average, a 4-year lifespan with the vehicle. Leasing also gives you the chance to buy the car out at the end of the lease at its depreciated price. So if the car depreciated 60%, then you will only cover that amount in your upcoming monthly payments. You also get the opportunity to lease another car with the dealership, letting you experience the newest tech and advancements in the flagship models.
Change your kilometre Allowance:
An easy way to lower your monthly lease payments is by lowering your kilometre allowance. Of course, you can only do this if your daily commute/schedule allows for it, but the dollars you’ll save is worth considering. Changing your kilometre allowance by only about 4000 KMs can lower your lease by up to $50 dollars and although it may seem like a small amount of money when considering the average 48-month lease, you’ll save $2400 dollars.
Get a dealer invoice price report
Using an online tool like Car Cost Canada’s dealer invoice price report is a great way to save money on your new lease. The website allows you, the consumer, to avoid all the negotiations with the dealership and save as much money as possible.
Instead of going into a dealership and paying hidden fees, Car Cost Canada’s dealer invoice price report presents you with the price the dealer pays for the car and then shows you all the hidden fees that are added onto the vehicle. Car Cost Canada even connects you with a local dealer that works directly with Car Cost Canada, eliminating any awkward confrontations and promoting a friendly, welcoming and cost-efficient transaction. Finally, add a 3% dealer markup and boom – you walk away with the best price possible.
Use these three tips and make sure you save every dollar possible on your brand new lease – remember every dollar counts when you’re in a long-term lease!