Leasing vs Financing in Windsor, ON

Financial Options for Buying a Vehicle at Overseas Motors BMW

When you’re planning to purchase a new or used vehicle, you have two financial options at your disposal: leasing, or financing. Given how each option is unique and different, going into a test drive for a vehicle you want to drive away with can be a smart move. As such, our financing team at Overseas Motors BMW has put together this helpful guide so you can learn more about both leasing and financing, including the benefits of both options, to better help you decide which option to choose when shopping for a new or used vehicle in Windsor, ON!

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How Do You Lease a Vehicle?

Think of leasing a vehicle as borrowing the vehicle from the dealership itself. To lease a vehicle, you sign a leasing agreement with a dealership, which outlines the length of time you will use the vehicle (typically around 2-4 years), as well as what payments you will make to use the vehicle and the maximum mileage you can drive the vehicle for during that time. Once you reach the end of the agreed-upon term, you get to choose whether you want to buy the vehicle (at the vehicle’s depreciated value based on how much you paid for while leasing the vehicle) or return it to the dealership (typically so you can lease a newer vehicle instead).

How Do You Finance a Vehicle?

Financing a vehicle means allowing a third party, be it a bank, credit union, or the dealership, to loan you the money needed to buy the vehicle outright. You then have a set term (typically around 3-8 years) to pay back the loan to the third party, which includes an interest rate that is agreed upon signing the paperwork. Once you reach the end of the agreed-upon term, the loan is completely paid off, and you can choose whether you want to trade in or sell the vehicle or keep it for yourself. With financing, you can also trade in or sell the vehicle before the term is over, and use part of the money you get from doing so to pay off the rest of the loan. As the vehicle is yours outright, you can use it however much or little as you want, though you should keep in mind that when reselling or trading in your vehicle, it will typically have a higher market value if it has less mileage on it compared to if the mileage is higher.

3 Best Benefits of Leasing & Financing

Leasing
1. Lease payments are typically lower than financing payments
2. It’s easier to upgrade to a newer vehicle every few years when leasing
3. Warranties typically cover the entire lease term, keeping you protected from any expensive repair work
Financing
1. You own the vehicle, so you can use it however you want
2. There are usually more interest rate deals on financing options than leasing options that you can get
3. When you finance, you can build a low/non-existing credit score easily by getting your payments in when they’re due

Lease or Finance a Vehicle at Overseas Motors BMW in Windsor, ON

At Overseas Motors BMW, you can both lease or finance any of the vehicles in our new or used inventories! Stop by and see us in Windsor, ON, and our financing team can walk you through the different financing options available to you for whichever vehicle catches your eye. Reach out to us to learn more, and use the secure form below to apply for credit today!