Should I lease or buy a car?

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    It’s time to upgrade. When you dream of getting behind the wheel of a new vehicle, you know you have options. Are you going to buy a car Or do you lease a car? Either way, unless you have enough cash to pay for the vehicle directly, which is not very common, you will likely need a car loan from the manufacturer or your preferred financial institution. Here’s what you need to know before browsing the dealerships and chatting with private sellers.

    Activities before buying a car

    First and foremost, let your financial institution know that you are planning on getting a new car. They will help you pre-qualify for a car loan. Your lender will ask about your current income and financial obligations to learn what you can responsibly afford.

    Now, if you’re curious to work out some numbers, play with our car loan calculator. You can determine the loan amount that you can qualify for based on your available down payment, interest rate, loan duration, and desired monthly payment amount.

    Getting a realistic look at the numbers is an important step in buying a new car because it helps you shop safely. Knowing which payment method will fit your budget can help you make a larger purchase to relieve stress and keep your financial health in tip-top shape, especially if you have other major purchases planned in the future, such as: B. a residential or recreational vehicle.

    Buying a car versus leasing a car

    A new car is a new car, right? Not exactly. As well as looking to browse brand new or used cars, consider buying or leasing your next vehicle. The main difference is who owns the vehicle while you are driving it.

    Leasing a car means borrowing or temporarily renting it from the dealership for a period of time. The period, price per month and maintenance details are set out in the contract you sign with the car dealer. Since you only have the car for a limited amount of time, the monthly payments are usually lower and the interest rates can be better. The payments and incentives vary from manufacturer to manufacturer and are seasonal.

    Some leases share or fully cover maintenance costs with the lessee, making this option more financially manageable for first-time buyers. But read the fine print. Most leases limit the number of miles you can drive (and charge a fee for exceeding it) before you return it.

    Conversely, buying a car means that once the contract has been signed, you are entirely your responsibility. You are responsible for paying the car loan every month, and after paying the final installment, the vehicle is all yours. You can keep driving it or sell it.

    In contrast to a leasing vehicle, you do not return the car to the dealership after the final payment. Some people prefer this option so that they can drive the same car for a long period of time. In addition, the paid-for vehicle has a value and can be used as a trade-in when you buy your next vehicle.

    Think about which option makes sense for your lifestyle and finances now and for the next three to five years. This is a common schedule for leases and auto loans.

    How does a car loan work?

    If you are planning to buy your next car, it is important to learn a little more about how to use a car loan to finance your choice. Your financial institution can help you understand current interest rates, the loan application process, and any fees associated with borrowing a new car.

    After a loan has been approved, we will work with you to decide which conditions best suit your lifestyle. For those who qualify, we offer up to 115% mortgage lending value if you need a little extra cash to make repairs or upgrades to your new vehicle. This option is popular when buying from a private seller who, when selling a car “as is”, discloses the vehicle’s immediate need for maintenance.

    Once you have the keys to your car, start paying directly to your credit service provider or trusted third party provider. And that’s it! When you’re ready to get your car loan approval rolling or just have questions, contact us today. We are happy to help you make this new car a reality.

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