When getting a used car, many Canadians must decide between leasing and buying. Both options have advantages and disadvantages, and the best choice depends on your lifestyle, budget, and driving habits. At London Auto Valley, we know this decision can be tough. Understanding the financial and practical pros and cons of leasing versus buying can help you choose what fits your needs best.
We cover important factors like upfront costs, monthly payments, long-term value, and flexibility. Whether you want affordability, convenience, or the benefits of ownership, consider these key details before making your decision.
Before looking at the numbers, let’s understand the key terms:
When you visit professional used car dealerships in London, Ontario, like London Auto Valley, you’ll find both buying and leasing options that fit your needs and budget.
Financing a used car usually needs a large down payment. Buyers also have to pay provincial taxes, licensing fees, and dealership fees.
Leasing a used car typically has lower initial costs. Some leases require little or no down payment, and taxes can be included in monthly payments. This is a big benefit for those on a budget.
Key takeaway: If you want to keep upfront costs low and avoid using your savings, leasing is a better option.
Monthly payments are a key factor in budgeting. Leasing a car typically has lower monthly payments because you only pay for the car’s depreciation, not its full price.
On the other hand, buying a used car means higher monthly payments at first, but those stop once you pay off the loan. Then, the car is yours, and you only need to cover insurance, maintenance, and fuel.
Budget tip: Leasing can help reduce monthly costs, but buying a car offers better financial freedom in the long run.
When you buy a car, either with cash or a loan, it belongs to you. You can:
Leasing a car is different. You have to return it when the lease ends. You can’t make changes, and you’ll face fees for too much wear and tear or mileage.
If you want long-term value and freedom, buying a car is the better choice.
Car buyers often worry about depreciation. The good news is that used cars lose value more slowly than new ones, making your investment safer.
When you buy a car, you can sell or trade it later and get some money back. In contrast, if you lease a car, you won’t own it and must return it when the lease ends.
Tip: Buying from a top used car dealer in London, Ontario, helps you find a vehicle with good value and demand, boosting your chances of selling it later for a good price.
Mileage limits are a big downside of leasing. Most leases allow for 20,000 to 25,000 kilometres per year. If you go over that, you might face high penalties, sometimes up to $0.15 for each extra kilometre.
When you buy a used car, you don’t have to worry about mileage. You can drive as much as you want, wherever you want, without limits.
Freedom is important: If you travel often or have a long commute, buying a car gives you complete control without the risk of extra fees.
Lease contracts usually have strict maintenance rules. If you don’t follow them, you might face penalties. Since you’re leasing a used vehicle, you may need more repairs, and unless it’s under warranty, you’ll have to pay for those.
Buying a used car lets you choose when and where to service it. Certified used car dealerships in London, Ontario, often offer extended warranties, which can help with maintenance concerns.
Cost tip: Remember to consider repair costs before making your decision.
Leasing may seem cheaper at first, but when you look at the total cost over 5 to 10 years, buying usually saves you money.
Once you pay off your car loan, you won’t have monthly payments anymore. This means you can own the car for years with only a few ongoing costs, like maintenance and insurance.
Building equity is another advantage of buying. Every time you make a loan payment, you own more of the car. With leasing, you are just renting, so you keep paying without gaining any value.
Here’s how to decide based on your personal or professional needs:
Whether you’re a smart shopper or an experienced dealer, each option has its best situations. Let our team at London Auto Valley help you find the right vehicle and plan.
Your lifestyle and environmental values can affect your choices. If you like to switch to newer fuel-efficient or electric cars every few years, leasing gives you that option.
On the other hand, keeping a car for a long time and taking good care of it can lower the environmental damage caused by making and transporting new cars.
Sustainability tip: Buying a reliable, well-maintained used car from a trusted dealership in London, Ontario, can help you be more eco-friendly while saving money in the long run.
There’s no one-size-fits-all answer to whether you should lease or buy a used car. Your financial goals, lifestyle, and personal preferences matter.
If you want short-term flexibility, stay within mileage limits, and enjoy trying new models, leasing might be right for you. However, if you’re focused on saving money in the long run and building equity, buying is usually a better choice.
At London Auto Valley, we help customers across Canada find smart and affordable vehicle solutions. Whether you need financing for a used car or want to check out the best-used cars for sale in London, our friendly team is ready to assist you. We are proud to be one of the top used car dealerships in London, Ontario.
Visit us today to explore our inventory, talk to a financing expert, or test drive a car that fits your needs.
