Lease or Finance?

We all have different priorities - in cars, life and finances. Getting the information you need to make an informed decision about which option suits you, your finances and your lifestyle should be easy.

We have a great team of finance experts at Jim Gauthier Chevrolet to help you make this decision. To help you get started we've put together some industry expert advice to consider.

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Priorities to consider

Is leasing right for me?

  • You want lower monthly payments

  • You want the latest in features and safety

  • You want a vehicle that is always covered by warranty

  • You enjoy driving a new vehicle

  • You don't want to worry about selling

  • You drive a lower or average amount of km per year

  • Have a stable, predictable lifestyle

Is financing right for me?

  • You want to build ownership equity

  • You want to add modifications to your vehicle

  • You drive your vehicles for an extended length of time

  • Are prepared to cover repair costs after warranty ends

  • You prefer to have a trade-in

  • You drive a higher number of kms per year than average

  • You have possible lifestyle changes in the near future

Leasing has lower monthly payments, as you are only paying for the depreciation rather than full retail price. Combined with the benefits of driving a new car every two or three years, that at the end of the term, can be bought out, or simply returned can make leasing a simple and attractive option.

Financing is great for those who prefer to own their vehicle outright, and expect to drive the same vehicle for a longer period of time. If you drive a high number of kilometers or like to customize your vehicle and financing may be the right option.

Which is more cost effective?

Lease payments are typically lower than finance payments for the same vehicle, at the same price point, with the same down payment regardless of financing or interest rates.

This means leasing can be more cost effective in the short term by anywhere from 30%-60%

Costs of leasing and financing are fairly even assuming the vehicle will be traded in at the end of the finance/lease term.

Some industry experts believe that either leasing or financing is better however there is no real cost advantage for either financing or leasing in the medium term.

In the long term financing can have a significant cost advantage. The longer you own that same vehicle the more considerable that advantage becomes.

The risk of unexpectedly higher than average maintenance costs or a total loss of the vehicle through an accident or damage can lessen or even eliminate that advantage.

Strictly looking at costs, should you prefer a new vehicle every few years, then a lease is your most cost effective option. If you prefer to drive the same vehicle, for as long as possible, the longer you are able to drive that vehicle, the more financing becomes the cost-effective option.

At Jim Gauthier Chevrolet we want to help you make an informed decision and if you have any other questions about leasing or financing your next vehicle we would be happy to help.

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