Getting a new vehicle can be both exciting and exhausting. Between the seemingly endless search for the perfect ride, the paperwork that comes with it, and the headache of sticking within your budget, purchasing a vehicle here in Toronto can be a long (but ultimately worthwhile) endeavour. Don’t sacrifice on quality though, even if the process feels difficult and drawn out. It will all be worth it to have a vehicle you can be happy with for years to come.
Chances are, when you think of getting a new vehicle, you think of purchasing one, whether that means getting a loan or finding a lower priced vehicle and paying with cash. Buying a car might be a great option, depending on your position in life, but another option most people completely overlook is that of leasing a vehicle. Most people would be surprised to learn that leasing instead of buying can save them money, and that you can actually lease your dream luxury car for around the same monthly cost you’d pay if you purchased a clunker.
So what exactly does it mean to lease a car? It’s really quite simple. Instead of buying the car to own, you are sort of renting it for three to five years. Instead of paying the full, often steep cost of the vehicle, you are only paying based on depreciation. There are several benefits to going with this approach:
- Lower Monthly Payments.Typically, your monthly payment with a leased car is going to be much less than if you purchased it outright. A car won’t fully depreciate in the four to five years you’d have it during a lease. So, say you have a $34,000 car and to purchase it would cost $650 a month. With a lease, it might cost closer to $400-$450.
- More Vehicle For Your Money. You may be tempted, even with a lease, to go for the lowest possible priced car. Don’t sacrifice on quality though: It’s not worth it. Instead, stick to your intended budget and see the amazing vehicle selection you now have access to. Before, you may have had to drive an out-dated clunker, but by leasing, you might be able to go for a more impressive ride.
- No or Low Down payment. This is a huge difference when compared to purchasing a brand new ride, or even an older one, and it’s where you can save a ton of cash. Most dealers let you lease a car with little to no down payment, which makes leasing affordable for almost anyone.
Making payments based on depreciation may seem strange at first, but after a quick mental adjustment you’ll wonder why you haven’t done it before. If you’re looking for a new ride in Toronto, consider leasing as an option. You’ll not only have more monthly cash flow to spend on other things (like the high cost of rent in this city), but you’ll be cruising around in a car you never thought you could afford.