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Buying a new vehicle is a headache and choosing from the many brands available can be difficult. Except for those fortunate enough to have a company car, it is often necessary to own your own car, even if it is just to get to work.
However, depending on how you use your car, you may be wondering whether it is better to buy or lease. Each option has its advantages and disadvantages, and we’ll tell you more about them so you can make an informed decision.
So, should you buy or lease your car in Quebec? In this article, we compare the two solutions to help you make your choice.
First of all, it should be noted that there are several types of leasing; namely leasing with the option to purchase and long-term leasing.
The rental with purchase option allows you, as its name indicates, to acquire the vehicle at the end of your contract. You may be asked to make a down payment on this type of lease, which means that you will have to budget more. In addition, the vehicle may lose value upon resale.
Long-term leases are for a period of two to five years and the vehicle must be returned at the end of the contract. The problem is that there are reconditioning fees and other charges if you exceed the mileage limit, for example.
Leasing may be a viable option if you prefer the purchase option. However, you may lose out on the resale, as you have to wait until the end of the lease. If you fail to pay, the leasing company may impose penalties that can cost you dearly. Finally, leasing will cost you more than buying a vehicle because of the fees and interest that must be paid.
Buying a vehicle gives you a choice that leasing does not: you can buy new or used. If you choose to buy used, your vehicle will not be brand new, but you will get a better price. This is the smartest choice, if you have some knowledge of cars.
You can buy a vehicle with cash and pay the full amount or you can ask for a credit from a third party. The amount can be paid directly to the dealer and once you have finished your monthly payments, you are completely free. It is even possible to sell it before the end of your monthly payments and pay them off before buying a new vehicle.
Leasing has certain advantages, such as access to a new vehicle quickly without worrying about the purchase price. However, this solution can turn against you in case of non-payment and additional costs may arise
Buying remains the most practical solution since you can turn to the second-hand market, thus at a lower price and there is no need to pay monthly instalments if you pay the sum in one go.
