Is Leasing a Car a Good Idea in Canada? It Depends.
Is Leasing a Car a Good Idea in Canada? It Depends.
Posted on October 19, 2022
The concept behind leasing a car is a good idea: get a new car every few years, never worry about not being under warranty for repairs, always have the latest technology, and drive a nicer car than you could typically afford to buy.
Sounds great, right? Here are some reasons why leasing a car may not be a good idea.
Never-ending Payments
That point we mentioned about getting a new car every few years? That’s another way of saying that you’ll never stop paying for cars. At the end of the lease term, you bring your car in and sign into a new lease on a new car. Sure, you’ll always have a fun new vehicle, but do you want to be making car payments for the rest of your life?
Rules and Regulations
Leasing a car is like borrowing a book from the library. It’s not your book, and the library expects it back in the same condition they lent it to you (or very nearly). Leased vehicles come with kilometer limits, so you need to be conscious of how much you drive. You’d better be someone who looks after their car too if you plan to lease. The dealer will be expecting the car back with only minimal wear and tear. If you ding it up or go over your kilometer limit, you’ll be handed some hefty fees at trade-in time.
No Ownership
Like we said, when you lease a car, you’re just borrowing it from the dealer. One of the benefits of buying versus leasing is that once your loan is paid off, the car is yours. You end up with an asset that you’ll never have with continual leasing.
On the surface, a lease looks like it’ll cost you less because payments are generally lower than on a car loan. You need to look at the big picture though and realize that ending up with a vehicle you own is much better than having nothing to show for your money.
As always, you need to make the right decision for you. Getting a new car every few years that’s always under warranty might work for you. Some people don’t need to worry about kilometer limits either. So Leasing a car is a good idea depending on your lifestyle. There's no right or wrong answer!
If buying a car sounds like a better option, you can get pre-approved for financing and browse cars within your budget all in one place with Unique Chrysler!