Should I Buy or Lease?

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One of the first decisions Cornwall drivers will need to make when shopping for a vehicle is whether they prefer to lease or buy. If you’re unsure of what the differences between these two financial strategies are, take a moment to compare the perks of a lease vs. buying your next model. Then, fill out a pre-approval and explore the inventory of new vehicles at Hillside Chevrolet Buick GMC in Charlottetown!

The Benefits of a Lease vs. Financing

Leasing

When you lease a vehicle near Stratford, you’re renting it for a number of years and will enjoy exclusive access to it. Since you’ll only be using the model for a few years, however, your payments only go to cover the estimated amount of vehicle value that will depreciate over the course of your lease term.

This loan won’t be anywhere near as large as a finance loan, which covers the vehicle’s full value. Therefore, your monthly payments will be much lower each month, you won’t have to put as large of an initial payment down, and you’ll pay less sales tax.

On top of all that, your vehicle will be covered by its original manufacturer warranty throughout the duration of your lease term.

Finally, leasing affords much greater flexibility. Once your lease term is up, you can walk away from your car, renew your lease, swap it out for the latest and greatest, or finance the remaining value.

Buying

So, should you buy or lease? If your budget can handle financing a vehicle, it’s technically the most cost-effective strategy. That’s because you retain the right to sell your model at any time, and it’s very easy to get market value for a car and find buyers, so it’s a reliable investment. You will recoup some of the money you sunk into your car when it comes time to sell. That said, this path requires a larger down payment, more sales tax, and higher monthly payments, so it’s a bigger commitment for a bigger payoff.

Other benefits of buying include not having mile overage limits as you do with a lease, and being able to customize your vehicle however you like. While your vehicle won’t be covered by its original warranty forever, you’ll get years and years of coverage before it expires—all good things.

Discuss Your Options with Hillside Chevrolet Buick GMC in Charlottetown

Now that you’ve compared the differences between a lease vs. buying a car, if you’re still unsure of whether you should buy or lease your next vehicle, get in touch with our financiers. PEI drivers can call them at 833-914-1419. In the meantime, take a moment to explore our car buying tips for other information about how car financing works! We look forward to helping you streamline the auto shopping experience with expert and efficient customer service! Don’t forget to check out our overview of the cost of gap insurance!

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