Understanding Automotive Leasing & Financing at Downtown Chrysler
If you’re in the market for a new or used vehicle, it’s almost a guarantee that you’ve come across the terms “leasing” and “financing” during your research. These two terms are often thrown around but the differences between the two are rarely explained until you’re already sitting on the showroom floor. At Downtown Chrysler, we want our customers to make the most informed decisions possible, that’s why our team has compiled the key differences, along with the benefits of each option, so that our customers can be confident with their decision.
Leasing
An automotive lease is a great option for drivers who want lower monthly payments, and the ability to drive a new Chrysler, Jeep, Dodge or RAM vehicle every few years. By opting to lease a vehicle, you agree to certain terms and conditions that allow you to drive a vehicle for a set period of time, with the knowledge that you are required to return the vehicle once the term limit and/or kilometre limit has been reached.
Benefits of Leasing
- Lower Monthly Payments: Monthly lease payments are generally lower than financing payments because you’re only paying for the vehicle’s depreciation over the lease term.
- Drive the Latest Models: Leasing lets you upgrade to a new model every few years, ensuring you always have the latest technology and safety features.
- Warranty Coverage: Most leases align with the manufacturer’s warranty period, meaning fewer out-of-pocket repair costs.
At Downtown Chrysler in Toronto, we offer flexible leasing terms, so you can enjoy a new Chrysler, Jeep, Dodge or RAM model without committing to long-term ownership. Get in touch with one of our leasing managers and they’ll help you structure a lease agreement that fits your needs and your budget.
Financing
Automotive financing is geared towards drivers who want to fully-own their vehicle. Financing gives owners the freedom to drive as much as they want, modify their vehicle as they see fit, and are willing to keep their vehicle for more than just a few years.
Benefits of Financing
- Full Vehicle Ownership: When you finance a vehicle, each payment contributes toward the full ownership of your vehicle.
- No Kilometre Restrictions: Unlike leases, financing has no kilometre restrictions, making it ideal for drivers who travel frequently or have longer commutes.
- Customization Freedom: As the owner, you can modify or customize your vehicle as you please, without worrying about lease-end penalties.
Downtown Chrysler offers competitive financing options, making it easy for drivers in the Greater Toronto Area to attain affordable monthly payments, while building equity in their vehicle. Get in touch with our finance specialist to learn more, or apply for financing, today!
Key Differences Between Leasing and Financing
- Monthly Payments: Compared to financing, vehicle lease agreements typically have lower monthly payments due to their shorter terms.
- Vehicle Ownership: Financing results in outright ownership, while leasing requires you to return the vehicle after a set period of time and/or kilometres.
- Kilometre Restrictions: Lease agreements often have mileage restrictions; financing has no such limits.
- Customization: When you finance your vehicle, you’re free to modify it as you see fit. On the other hand, lease agreements generally prohibit modifications and include penalties for the vehicle’s physical condition if it surpasses an agreed upon normal wear and tear threshold.
Shop New & Used Vehicles at Downtown Chrysler
Now that you’re aware of the differences between automotive financing and leasing, when it comes time to shop for your next vehicle, find yours at Downtown Chrysler. Let our product specialist help you find the ideal vehicle for your needs and allow our lease & finance experts to assist you with monthly payments that fit your budget.