Leasing vs Financing

Choose the Best Option for You.

Okotoks Honda is committed to getting you in the driver’s seat of your new car, and offers a variety of flexible lease and finance options to suit your needs. But these options can often appear complicated, which is why we have broken them down here to help you make an informed decision.

Simply put, financing a vehicle means that you are taking out a loan from a financial institution for the full cost of the vehicle, including all its associated fees and taxes. You pay back that loan over a set number of years via monthly installments, with the longer the term, the smaller the payments.

On the other hand, leasing offers you the chance to drive your favourite vehicle for only a portion of its cost. This is because you only pay for the amount of time that the vehicle is in your possession, which results in considerably lower monthly payments. The term is also usually shorter, ranging anywhere from 48 to 60 months. Here, calculation of monthly payments depends on the difference between a car’s original sale price and its residual value, which is a vehicle’s worth after the end of a lease.