Leasing Basics at Lexus of Edmonton
Getting into a new Vehicle
When looking to get into a new vehicle, a dealership will typically offer their customers two main options for how they’d like to proceed with the investment outside of the more uncommon scenario of providing full cash value upfront – a financing or leasing plan. Both plans offer different routes and philosophies on how car buyers would like to own their vehicles, which may cater to their particular lifestyles.
Financing Vs. Leasing
Most people are probably familiar with the concept of financing an investment. It’s a nice way of describing the process of getting approved for and pulling out a loan from which to cover the entire cost of whatever a consumer is purchasing – in this case, a new or used vehicle. Financing loans are subject to annual interest, and are typically paid back on a month-to-month basis in increments decided by the total value of the loan and the duration for which it is being repaid. With a financing plan, the buyer purchases the vehicle outright and becomes the sole owner.
A Leasing plan however can be better compared to renting a living space in a classic sense. Rather than purchasing a new vehicle entirely, the buyer signs up for what may be described as a long-term rental for which the buyer is responsible to the dealership for the vehicle as if it was his or her own property. With a leasing plan, the buyer does not actually own the vehicle, but is subjected to much lower payments as the value of the contract is determined by the depreciation of the vehicle for the duration of the term rather than the vehicles total cost.
Why Lease a New Vehicle?
There are a number of advantages to leasing which provide vehicle buyers another option against purchasing a vehicle when looking to get themselves into a new ride. For a start, leasing contracts typically involve payments that are much lower than loan payments would be for the same vehicle. This is because rather than investing in the total cost of the vehicle, lease terms only have you pay for the estimated depreciation value for the duration of the contract. Typically those who lease cars enjoy being in a different and new vehicle every few years, and they get to do so paying less than one would buying a vehicle outright and riding out its depreciation over a much longer span of time. `
Leasing at Lexus of Edmonton
A great thing about leasing with a dealership such as Lexus of Edmonton is that the dealership offers options and protection such as GAP insurance rates, minimized depreciation and fixed end residuals that guarantee the vehicle’s value at lease-end, which provide a heightened value for the consumer. And at the end of the day, a consumer has the option to buyout the remaining value of the vehicle at the end of their lease term if they decide they really love the vehicle and would like to keep it.
Book an Appointment
Please never hesitate to contact the staff at Lexus of Edmonton to have all your specific questions about leasing or financing answered. Call the dealership at 1-866-936-8300 during business hours, come down to our showroom at 11204 170th Street NW in Edmonton, or fill out the form below with your information to schedule a personal appointment right now. We look forward to hearing from you!