Lease or Finance at Key Auto Group
Automotive Leasing and Financing Options in Saskatchewan & Manitoba
Are you in the market for a new vehicle but are unsure of whether you should lease or finance? Don’t worry, we’ve all been there before. We understand that differentiating between the two can be confusing, that’s why our team here at Key Auto Group has taken the liberty of discussing the nuances of automotive financing and leasing. Continue reading below to learn more about the benefits of each option, things to consider when choosing one over the other, as well as the benefits of purchasing your next vehicle from a Key Auto Group dealership.
How Does Leasing a Car Work?
An automotive lease is an agreement between two parties, where the lessor (financial institution) takes ownership of the vehicle, while the lessee (you) agrees to certain conditions in order to drive the vehicle for a pre-set amount of time and kilometres.
What are the Benefits of Leasing over Financing?
- Avoid depreciation: Since you’re only responsible for the vehicle for a set amount of time, you avoid taking on the costs of the vehicle’s depreciation.
- Lower payments: As lease terms are typically shorter than vehicle financing, lease payments are usually lower in the short term.
- Flexible end of term options: Enjoy the ability to drive a new vehicle every few years or the option to buy out your current ride at the end of its term.
Things to Consider:
- Lease Conditions: Lease agreements come with certain conditions that typically include a set time period, mileage limit, and vehicle condition requirements.
How Does Financing a Car Work?
In short, financing a vehicle means borrowing money from a financial institution and agreeing on a set payment term and interest rate, with the end result being full vehicle ownership at the end of the term. This option is ideal for drivers who intend to keep their vehicle for an extended period of time (over 8 to 10 years).
What are the Benefits of Financing over Leasing?
- Typically lower interest rates: Due to the availability of longer terms than lease agreements, vehicle financing agreements usually have lower interest rates and thus cost less in the long run.
- Ability to modify your vehicle: As you own the vehicle outright, you have the freedom to alter and modify your vehicle as you see fit.
- Drive as much as you want: Since the vehicle will be owned by you at the end of the term, financing a vehicle does not come with mileage limits or conditions.
Things to Consider:
- Maintenance Costs: Vehicle ownership means incurring routine maintenance costs that are required to keep the vehicle in peak operating condition.
- Depreciation: Since you own the vehicle, you incur the inevitable depreciation costs.
Why Finance or Lease a Vehicle at Key Auto Group?
By choosing to lease or finance a vehicle with Key Auto Group, you can take advantage of the multiple perks and benefits that come with purchasing a vehicle from one of our dealerships. Read more about the Key Auto Group Advantage, here.
Whether you’re in the market for a Toyota, a Kia or a General Motors vehicle, our Key Auto Group dealerships are here to help you get behind the wheel of your next vehicle. Visit one of our five dealership locations in Saskatchewan and Manitoba and experience the Key Auto Group Advantage, today!