- Written by Colin Snider, Sales Representative at Kingston Dodge

 Leasing? Financing? Which option is best for me?


Leasing has consistently been a topic in which the average buyer has no shortage of questions on. There is, however, an increasingly popular view on leasing: "I lease because I want to have options". In addition to options, your monthly payment on a lease is quite often less than a financed payment. At the end of your lease you will have the ability to:

            1.   Get into a new vehicle - either on another lease or a purchase.

            2.   Walk away from your vehicle.

            3.   Purchase your leased vehicle at the residual price (wholesale value of the leased vehicle after the lease term).

Realistically, everyone wants to get into a newer car more often, and leasing puts you in a position to do just that. With each new model year, vehicles become more advanced, offer more safety features, have better fuel economy, and just look cooler. Who wouldn't want a new car more often?


Let's dig deeper with the two concepts:

  • Financed purchases involve borrowing money from a financial institution through the car dealership in order to purchase a vehicle. In this scenario, you end up owning your vehicle at the end of a payment term. As well, you pay tax on the entire vehicle amount with the initial purchase of the vehicle.
  • Whereas in a lease, you do not own the vehicle in the end, the leasing company (often a third party) owns your leased vehicle. Though, at 'lease-end' you do have options, which are outlined above. As well, in a lease scenario you only pay for YOUR use of the vehicle for the duration of the lease term. Additionally, you only pay tax on your payments during the term, rather than full purchase price, which can save thousands.

Another popular thought that is pushing people towards leasing is that you can be under warranty for the full lease term, whereas with a finance purchase most people end up paying the mechanic near the end of their six, seven, or eight year term, in addition to their car payments. Obviously extended warranties are fantastic options to mitigate that risk, but a lease keeps you in a protected position with your vehicle; and we all know how much of a cost maintaining a vehicle can be.

As previously discussed, leasing and financing are the two main avenues for getting into a new vehicle. The traditional thought is: "I finance because I want to own my car". Whether you lease or finance, you don't own your car until you actually complete your term, because in both situations you are borrowing money.




  Here is a summary chart of the pros to leasing and financing, with an example: 





  • Only pay for your use of the vehicle
  • Often a lower monthly payment
  • Don't pay the mechanic - you're covered under warranty
  • Get new cars more often
  • Your vehicle always has the latest technology and safety features




  • Own the vehicle at the end of your payment period
  • No mileage limits
  • Build equity with car value
  • Longer financing terms available
  • Accessorize your vehicle as desired

Lease vs. Finance Example



2017 Chrysler Pacifica equipped with:

3.6L Pentastar V6

Parkview Backup Camera

UConnect Bluetooth

Stow 'n' Go Seating

8-way Power Drivers Seat

Trailer Tow Group


Vehicle Price - $43,265

Lease Term

51 months

Finance Term

84 months

Interest Rate


Interest Rate


Residual Value


Monthly Payment


Down Payment




Monthly Payment





In this scenario, leasing a Pacifica achieves a lower payment, and provides the opportunity to get into a new vehicle, buy the leased Pacifica, or walk away from it all in just over four years, rather being tied to a loan until the end of year seven.


  *All rates and payment are upon approved credit. Lease payment requires security deposit ($525). Numbers featured are rounded figures. All prices, interest rates, and payments change monthly due to program changes.


 Both leasing and financing are viable options and neither trumps the other, but if you are the kind of person who takes good care of your vehicles, drives average or even low kilometers annually, will always be making car payments, and enjoys the newest and most advanced technologies, then leasing is an option you should strongly consider.

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Kingston Dodge Chrysler (1980) Ltd.

1429 Princess Street
Directions Kingston, ON K7M3E9

  • Sales: 613-549-8900
  • Service: 613-549-8900
  • Parts: 613.549.8980