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4 minute read Published on Jan 26, 2021 by BrokerLink Communications
If you’re in the market for a new vehicle, you might be considering leasing versus buying. There are advantages to both. The option that’s best for you depends heavily on your preferences, goals, and budget. To help with your decision, we’ve put together a list of pros and cons for leasing and buying a car.
Leasing a car in Canada is a smart option for someone who doesn’t want to own a vehicle later on. A car lease allows you to drive a brand new vehicle for a fixed period at an agreed monthly rate. To make things even easier, leasing doesn’t require a car loan approval or a hefty payment up front. However, unlike typical financing plans, monthly lease payments go toward the use of the vehicle instead of the ownership of the vehicle.
If you’re considering leasing, remember to lease is to have a long-term rental. Once the fixed lease period is over (typically between two to four years) then you must either return the car to the leasing company, or purchase it for market value.
So what happens when you buy a car in Canada?
Purchasing a car will involve time and research. At its core, it’s about:
In Canada there are two ways you can buy a car:
If you want to buy a new vehicle, you can only do so from a dealership. You can buy a used vehicle from either a dealership or a private seller.
Here are key factors you should consider when choosing whether to buy or lease:
Deciding whether to buy or lease your next vehicle ultimately comes down to what you’re comfortable with and what your goals are.
Whether you decide to buy or lease, it’s important to have the right insurance. Going with an insurance broker gives you peace of mind, which is something you can’t buy elsewhere. A BrokerLink insurance broker will take the time to get to know you. This will ensure you walk away with affordable car insurance that makes sense for your life.
The legal requirements are the same whether you buy or lease your vehicle. However, depending on the company you lease your vehicle from, the process of securing insurance may be different. They might secure coverage for you, or you may have to secure coverage on your own. Even if the leasing company offers insurance coverage of some kind, make sure you know exactly what is and isn’t covered. You may need to purchase additional coverage so you are fully protected.
New models come out in January. This means if you’re looking for a deal, the best time to lease or buy is usually in December. This is when dealerships are looking to get rid of old inventory to make room for new models. However, if you’re looking for the latest model, you’ll want to shop in January.
Yes and no. Finance rates are low, which is an advantage for buyers. However, many folks who no longer want to take public transportation are in the market for a vehicle. As always, do your research and consider all your options before making any decisions.