Finance vs. lease:
the pros & cons
Do you have any particular objectives in mind? As individuals, we tend to have varying concerns regarding our cars, lifestyles, and financial situations. The decision to opt for financing or leasing can be appropriate for one individual but completely unsuitable for another.
Our team comprises exceptional finance professionals who can assist you in identifying the most suitable option for your financial circumstances and personal preferences.
Pros of buying
- You own the vehicle
- You can drive as many kilometers as you want each year
- When you’ve paid off your loan, you’re free of payments and you can even build equity in the vehicle
- Freedom to add accessories, such as grilles, mirror caps, racks, or boxes.
Cons of buying
- Your car will depreciate over time
- It's your responsibility to pay for repairs when the warranty expires
- As your car gets older, maintenance costs can start to add up
- When it’s time to get a new car, you'll need to sell or trade in your vehicle.
Pros of leasing
- Sometimes monthly payments are lower
- You get to drive a new car every two or three years and enjoy the latest technology
- If you plan to move or travel at the end of the lease, you won’t have a car to sell
- You’re not with a vehicle that depreciates over time.
Cons of leasing
- You must keep the vehicle maintained and in good condition to avoid extra changes at the end of the lease
- There is a limit on the number of kilometers you can drive each year
- If you always lease, your monthly payments never end
- If you can’t keep the vehicle, you could face expensive penalties.
A few things influence your monthly lease payments, including:
- Lease charges
- The value of the vehicle
- Any down payment you make
- Interest rates
- Taxes and fees
- The anticipated depreciation of the vehicle
BMW Canada leasing options
You will always drive a new vehicle, you will usually enjoy lower payments than financing, and you will only pay for the portion you drive. With a variety of leasing options, BMW Canada make it easy for you to drive a BMW.
Standard Lease - competitive interest rates and lower monthly payments.
Get behind the wheel of a new BMW or a Certified Series® Pre-Owned vehicle with a BMW's Standard Lease. It offers competitive rates and lower monthly payments.
You get a guaranteed buyback value, flexible contract terms ranging from 24 to 48 months depending on the vehicle model year, and the option to choose your down payment. The lower monthly payments mean you can add on optional extras without breaking the bank.
At the end of your lease, you can return your vehicle for another new ride, or opt to purchase it outright.
Single Payment Lease - no monthly payments mean reduced costs
If you're considering leasing a BMW but have saved up the money to purchase it outright, a Single Payment Lease could be right for you. Make one lump sum payment and avoid monthly payments altogether while enjoying the benefits and security of leasing.
A Single Payment Lease has a reduced interest rate and borrowing costs - your expense and monthly payments is lower than with a Standard Lease. And because you make your payment up front, you only pay interest on the residual value of your vehicle. At the end of your Single Payment Lease agreement, you still have the option to purchase your BMW.
Multiple Security Deposit Lease - make your lease money work harder
Reduce your lease rate and eliminate residual-value risk with a Multiple Security Deposit Lease lets you. Make up to nine additional refundable security deposits and reduce the cost of borrowing and get lower monthly payments. You get all the security deposits back at the end of the lease*.
You can use your refunded security deposits toward a new BMW or apply them to the residual value of your current vehicle and purchase it outright. *Refundable amount may be reduced by the amount of any outstanding charges on your account.
Kilometre Options - pay only for the distance you drive
If the Standard Lease 24,000 km per year allowance doesn’t suit your needs, you have the freedom to choose an option that does. Additional kilometres can also be purchased up front.
New BMWs come with the option of 24,000 km, 20,000 km, 16,000 km or 12,000 km per year allowances, letting you to choose what best suits your needs. Contract Terms: Certified Series® Pre-Owned BMWs come with 30,000 km, 24,000 km and 18,000 km per year allowances, giving you more options to go the distance.
Both financing and leasing have their benefits. Whatever option you choose, our professional finance managers will go through all the details and answer any questions regarding warranties and other financing options to protect your investment. We look forward to meeting with you soon to discuss your needs and options!