Leasing and Financing Plans in Markham

Choose the Right Plan with the Help of Our Experts

When considering a new vehicle from Markham Kia, one of the key decisions you'll need to make is whether to lease or buy. Each option has its own set of benefits and considerations, and understanding these can help you make the best choice for your lifestyle and financial situation.

What is Leasing?

Leasing a vehicle involves essentially renting the car for a set period, usually between 24 and 48 months. During this time, you make monthly payments to use the vehicle. At the end of the lease term, you have the option to return the vehicle, purchase it at a predetermined price, or lease a new vehicle.

Benefits of Leasing:

• Lower Monthly Payments: Since you're only paying for the vehicle's depreciation during the lease term, monthly payments are typically lower than loan payments.
• Newer Vehicles More Often: Leasing allows you to drive a new car every few years, which means you can take advantage of the latest technology and features.
• Lower Maintenance Costs: Many leased vehicles are under warranty for the duration of the lease, reducing out-of-pocket maintenance expenses.

Considerations:

• Mileage Limits: Leases often come with mileage restrictions, and exceeding these limits can result in additional fees.
• No Ownership Equity: At the end of the lease, you don’t own the vehicle, and thus, you don’t build any equity.

What is Financing?

Financing, or buying a vehicle with a loan, involves borrowing money to purchase the car outright. You make monthly payments over a set term, typically between 36 and 72 months, until the loan is paid off. Once the loan is paid in full, you own the vehicle.

Benefits of Financing:

• Ownership: Once you’ve paid off the loan, you own the vehicle outright and can keep it as long as you wish.
• No Mileage Limits: Financing doesn’t come with mileage restrictions, so you can drive as much as you want without worrying about fees.
• Customization: Ownership allows you to modify and customize the vehicle to your liking.

Considerations:

• Higher Monthly Payments: Loan payments are generally higher than lease payments since you’re paying off the entire purchase price of the vehicle.
• Depreciation: The vehicle’s value depreciates over time, which can affect its resale value.

How to Choose the Right Option for You

Choosing between leasing and financing depends on your personal preferences, driving habits, and financial situation. Consider the following factors:

• Driving Habits: If you drive a lot of miles each year, financing might be a better option due to the mileage limits associated with leasing.
• Vehicle Preferences: If you enjoy driving the latest models with the newest features, leasing allows you to upgrade more frequently.
• Budget: Leasing often requires lower monthly payments, making it a more affordable option for those with a tighter budget.
• Long-Term Plans: If you plan to keep your vehicle for many years, financing can be more cost-effective in the long run.

Discuss your options with our knowledgeable finance team at Markham Kia to determine the best choice for your needs.