Is it better to buy or lease a vehicle?
There's no right answer to which Lexus financial option is truly best. Like just about every other decision you make, it depends on what is best for you and your lifestyle. To help, we pulled together all of the benefits and drawbacks to leasing a new Lexus in Calgary, or buying it outright.
Leasing a Lexus in Calgary
Do you see yourself driving the same car five years from now? If the answer is no, then you should really consider leasing!
Leases normally last up to 24-48 months, allowing you to get the sleekest, newest models about every two to four years. With the speed of technological advances—especially for an innovative brand like Lexus—this means you can experience new changes and perks right when they're available!
A lease will also mean that most repairs would be covered with a warranty. Repairs aren't a huge concern when a car is only driven for two to four years.
But the most important factor to most people who decide to lease is the cost difference. Leasing is more affordable. New Lexus car leases are like renting—the commitment is light and you don't finance the full cost of the vehicle. Instead of paying off a vehicle for many years, you just pay for the months you drive it.
Benefits of Leasing Lexus Cars
- Lower monthly payments & cash investment
- No upfront taxes
- No resale hassles
- Low maintenance costs
- No financial risk of accident repair
- Guaranteed Asset Protection (GAP)
- Factory warranty coverage
- Option to transfer lease to another person more easily
Leasing is packed with perks, but there are some limits to the arrangement that you need to consider.
First, how much (and how far) do you drive? Car leases have kilometre restrictions, usually around 16,000 to 24,000 kilometres a year, however, there are options to purchase extra kilometers up front if you are a higher kilometer driver.
That can make a big difference if you commute long distances or live out in the country.
On top of that, remember that you don't own the car with a lease. So you can't sell it, like you can when buying a car.
Drawbacks of Leasing Lexus Cars
- KM restrictions
- Overage fees if over KM
- Can't sell the vehicle
- Not ideal for long distance commutes
Buying a Lexus in Calgary
There are no KM restrictions when you own, and you can sell or trade whenever you like once the loan is paid off. Plus you gain equity and build credit throughout the length of the Lexus car financing.
However, if you're not ready to make a down payment and you don't have a vehicle to trade-in, it can be more difficult to get a car loan.You'll also have a harder time compromising the monthly price of the vehicle you really want against your budget when you're paying for the total cost of the vehicle. That said, you'll get a lower interest rate on a new Lexus model than a used one.
When you buy, you also take full responsibility for the vehicle after the warranty. You pay for all the repairs, and more of those will likely be needed once you're beyond the two to four years you would have leased.
Whether You Buy or Lease a Lexus in Calgary, We Can Help!
Lexus car financing options in Calgary depend on (among other things):
- How much you plan to drive
- How much money you have available
- How often you want to change vehicles
There’s no best option in buying versus leasing. Everyone’s situation is different, and at Lexus of Calgary, we can help you consider the best route for you! If you have Lexus financial questions or would like to get more information on Lexus leases, please reach out to our finance department!