Financing vs. Leasing a Car in Edmonton
Financing a Vehicle in Edmonton
When you decide to finance a vehicle, you agree to pay over time for the entire cost of the vehicle, and eventually, you’ll own it. Monthly payments are higher compared to leasing. How it usually works is you make a down payment, pay sales taxes, and pay an interest rate calculated by your credit score. You make your initial payment about a month after you sign the dotted line. Later, you’re certainly able to sell or trade the vehicle for its depreciated resale or trade value. With financing, you can customize your vehicle however you like, and there are no charges for vehicle wear and tear.
Leasing a Vehicle in Edmonton
Let’s talk about the advantages leasing a vehicle in Edmonton. When you decide to lease instead, you pay only a portion of a vehicle’s cost, determined by how long you own the vehicle and how many kilometres you put on the odometer. Leasing is similar to financing, but with some similarities to renting. At the end of the lease, you won’t actually own the vehicle; you’ll simply return it.
You have the option of not making a down payment, you pay sales tax only on your monthly payments, and you pay a financial rate that is similar to the interest you’ll generally see with loans. You might be required to pay certain fees and possibly a security deposit, which you wouldn’t pay up front. At lease-end, you’re able to either bring the vehicle back or purchase it for its depreciated resale value. You might be responsible for a lease-end disposition fee.
When you go with a shorter lease, you’ll have the opportunity to drive a completely different vehicle when the lease ends. Or if the vehicle is within the kilometre limit detailed in the lease agreement and has no abnormal wear and tear, you can simply return it to Southgate Audi instead. Purchasing the vehicle at the end of your lease is another option you might opt for! With leasing, you can customize your vehicle with only approved accessories.
That About Covers it!
We hope all that makes sense to you, but should you have any further questions about financing vs. leasing a car in Edmonton, or are interested in securing a plan for yourself, we welcome you to contact us at Southgate Audi. And should you be interested in leasing a vehicle, Audi Canada currently has a variety of short-term leasing opportunities for Audi A6/S6/A7/S7/RS7/Q7/A8/S8 vehicles! Contact us for further details.