Finance vs. Lease

How can we help you with financing your next car? At Markham Infiniti, the process doesn’t have to be confusing. Your auto finance choices are broader than ever, with various terms, great rates and leasing options.

Costs and Payments

When you buy, you pay for the entire cost of a vehicle, regardless of how many kilometers you drive it, or how long you keep it. Monthly payments are generally higher for financing, or purchasing a vehicle than they are compared to leasing. You have the option of making a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company. Interest rates can vary, based vehicle incentives and on your credit score. Later, if you decide to sell or trade
the vehicle, you will still have to pay the amount owing on it in full.

When you lease, you pay only a portion of a vehicle’s cost. You are paying for the use of the vehicle during the time that you have it instead of the entire cost. Leasing is a form of financing and is not the same as renting. You have the option of not making a down payment, and you pay a financial rate that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don’t pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value. You may be charged a lease-end disposition fee.


When you buy, whether you pay with cash or finance the vehicle, you own it. If you’re financing, you will, of course, have to meet the obligations the lender requires. and make your monthly payments. As the owner of the vehicle, you are responsible for making the monthly payments, and any upkeep or costs associated with your vehicle.

When you lease, you are deciding not to take ownership of the vehicle. The dealership you leased the vehicle through is the owner. This is why monthly lease payments are less than finance payments. You are paying for the use of the vehicle during the time that you have it instead of the entire cost.

Lease VS Buy Example

As an example, if you LEASE a $20,000 car that will have, say, an estimated resale value of $13,000 after 24 months, you only pay for the $7000 difference (this is called depreciation), plus finance charges, plus possible fees. You return the car at lease-end or buy it to own it.

When you BUY, you pay the entire $20,000, plus finance charges, plus possible fees. You own the car at the end of your loan, although its value is less than the $20,000 you initially paid.

If you are interested in purchasing or leasing a vehicle in Markham, Toronto or Scarborough, contact us with the form below or give us a call!