Looking for a new vehicle can be exciting, there are so many options it can be hard to know where to start. What make and model is right for your family’s needs? How can you be sure you’re getting a good deal and of course what colour is your favorite?

Making those decisions takes lots of time and consideration. One of the biggest decisions to make, when looking for a new vehicle, is deciding whether to lease or finance. Making that choice depends on your goals and priorities. What the best choice is for one person may not be what is right for you.

We have a great team of finance experts at Jim Gauthier Chevrolet to help you make this decision but we believe in keeping our customers as informed as possible so that these important decisions can be made with confidence. To help you do so here is some industry expert advice to consider.



If you want:

  • Lower monthly payments
  • The latest in features and safety
  • A vehicle that is always under warranty
  • To drive something new more often

& If you:

  • Have a good credit score
  • Are not expecting any major lifestyle changes
  • If you drive a lower or an average number of KM’s each year
  • Value having the latest and newest features

Then leasing may be the right choice for you



If you want:

  • To build equity
  • Have ownership of your vehicle
  • Have the freedom to customize your vehicle
  • To drive your vehicle for a long time

& If you:

  • Face any credit challenges
  • Are expecting changes which may alter your vehicle needs
  • If you drive a high number of KM’s in a year
  • Value owning your vehicle

Then financing may be the right choice for you.

Comparing the costs

Short Term

Short Term

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, by about 30%, in the short term.

Medium Term

The comparative costs of leasing and financing are fairly even assuming the vehicle will be sold/traded in at the end of the finance/lease term. Some industry experts believe the lower fees associated with a vehicle loan puts finance over lease, however others argue that the short term savings go further making leasing the better option. In the medium term there is no significant cost advantage for either leasing or financing. .

Medium Term
Long Term

Long 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 a vehicle through an accident or damage however can mitigate that advantage.

This shows that should you want a new vehicle every couple of years, or expect that your vehicle needs will change in the near future that a lease is likely to be the more cost-effective option.

If you don’t expect your needs or vehicle to change in the next 3-5 years the costs of either a leasing or financing are comparative and is up to your personal preference to decide which option best matches your life.

If you plan to drive your vehicle for more than 5 years or until it can no longer be driven then financing becomes the more cost-effective option with the value increasing dependent on how long after your payments end that your vehicle is able to continue being safely driven before maintenance costs outweigh the benefits of acquiring a new vehicle.

Hopefully the information provided here has helped you to decide whether to lease or finance your next vehicle. If you need further information before making this important decision talk to your Jim Gauthier Financial Advisor today.

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