Credit Department | Leasing vs. Purchasing | Extended Warranties
Short Term vs. Long Term Financing | Quality Care Maintenance Protection Plan

Leasing vs. Purchasing

The difference between leasing and purchasing your next vehicle is simple:

"In a lease you only pay for the total of the vehicles lifespan that you use"

In other words the lease is based off of the amount of kilometers and the length of time that you use the vehicle. The future value or residual is set at the beginning and your payments reflect the true depreciation that your vehicle is experiencing.

This is how leasing accurately adjusts to your specific needs today and protects you from changes in your future ownership needs by allowing you to change vehicles on a much shorter cycle than purchasing.

Lets look at two different scenarios.

"Joe" uses his vehicle to drive from location to location and uses the vehicle as his office on wheels. At the last place Joe purchased they recommended that he finance his purchase over seven years. After Joe had owned the truck for three years it had 165,000 km's. His diesel warranty had expired, he still owed 60% of his original purchase price and he needed to replace it. Joe was shocked to learn that his three-year-old truck was only worth 25-30% of his original purchase price and he was going to have to pay cash down on his next truck to cover that "negative equity".

"Mike" leased his truck for two years. His lease was arranged so that he would be paying for 120,000km's usage over that time. When his lease ended, Mike had only driven 110,000km, so he was refunded those unused kilometer charges. Mike had "wear-care" on his lease, so the minor wear and tear items (that he was concerned about being charged for) were waived and Mike picked out his next truck.

These two fictitious customers are not much different than the real customers I meet everyday.

As the Financial Services Manager it is my goal to ensure that you are never the average "Joe".

My responsibility is to structure your next vehicle purchase or lease to suit your needs.

The reality of having a vehicle is that it costs you money, how that money is accounted for is up to you.

If you have questions and would like some advice or guidance my door is always open.

Jeff White

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