Financial Options for Buying a Vehicle at Whiteoak Ford
Purchasing a new or used vehicle can be done through either leasing or financing options. Each option brings with it advantages and disadvantages that can fit better for different financial situations and timelines, so knowing about both before going in for a test drive is wise, as you can then make an informed decision that best works for you. At Whiteoak Ford, our financing team can let you know about the different financial options available to you, and have put together this informational guide covering how both leasing and financing a vehicle works including what you can expect the timelines of each to look like, as well as the benefits of both options (such as lower payment options on leasing and building up your credit score with financing), so you can be prepared the next time you set foot in a dealership in Mississauga, ON, when you’re looking to buy!
Vehicle Financing
Financing a vehicle is a financial process where a third party, such as a bank, credit union, or a dealership, loans the money so you can purchase the vehicle outright. You then have an agreed-upon amount of time (usually around 3-8 years) over which time you pay back the third party for the money, along with interest. When the financing term is complete, the loan is paid off and you can do whatever you wish with your vehicle, be it keep it, sell it, or trade it in for a newer model. You can also trade in or sell a vehicle while paying off a financial loan, as some of the money from selling the vehicle will then pay off the rest of the loan. With financing, the vehicle is yours the moment you take it off the lot, which allows you to have the freedom to use it however you like, including driving it as much or as little as you please. When reselling or trading it in though, do keep in mind that vehicles with higher mileage tend to get a lower market value than vehicles with lower mileage.
Vehicle Leasing
Leasing a vehicle is more akin to borrowing the vehicle from the dealership. You sign a leasing agreement, which lays out how long you will use the vehicle for (usually around 2-4 years), what payments you will make (and at what frequency of payment, such as weekly or monthly), and the maximum mileage you can drive the vehicle for during the leasing term. Once the leasing term is over, you choose between buying the vehicle, which is now at a lower rate due to its depreciated value and the fact you’ve been making payments on it, or returning it to the dealership, which allows you to lease a newer vehicle instead.
Top 3 Benefits of Both Financing & Leasing
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Financing
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Leasing
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Finance or Lease a Vehicle at Whiteoak Ford in Mississauga, ON
If you’re looking to purchase a new or used vehicle, both financing and leasing are available options at Whiteoak Ford in Mississauga, ON! Whenever you come in to discuss buying a vehicle with our financing team, you’ll learn all about the different financial options available to you for the vehicle that you’re most interested in. If you have any questions about financial options for our vehicles, feel free to get in touch with us, and use the secure form below to apply for credit today!