Lease or finance your next luxury car?

Start with the ownership question

A loan funds your purchase. A lease pays for use over a set period, with an available buyout if you want to keep the car. Compare the mileage allowance, return conditions and early-exit terms alongside the payment.

Source: Financial Consumer Agency of Canada: car financing options.

Put both proposals on one page

Ask for written proposals for the same vehicle specification. Compare over the same number of months, and separate the advertised vehicle price from the financing arrangement. If a price depends on financing, have that condition recorded clearly.

Build a simple comparison with the items below. Include tax consistently and label every estimate. If you intend to buy the leased vehicle, add the contractual buyout and any applicable purchase costs; a possible future loan for that buyout is a separate commitment.

• Cash at signing: down payment, deposits and any payments due immediately.
• Regular payments: amount, frequency and number of payments.
• Borrowing terms: annual rate, amount financed and total borrowing cost where applicable.
• Lease terms: distance allowance, excess-distance charge, return conditions and purchase option.
• End position: vehicle ownership, remaining loan balance, return obligation or planned buyout.
• Ownership costs: obtain insurance, service, tire and energy estimates for each candidate.

Make the time horizon explicit

If you expect to change cars after four years, a much longer loan needs a second question: what balance would remain when you want to sell? If you plan to keep a car for many years, compare the full ownership period rather than ending your analysis at the first lease return.

Show the remaining loan balance and estimated resale value at your planned change date. Try a few resale values to see how they affect the ownership cost.

Use a calculator to test assumptions

Change one input at a time: term, rate, down payment or price. Note how each choice changes total payments as well as the regular payment. Keep a record of the inputs beside the result so a conversation can focus on the assumptions.

Our payment calculator uses your price, down payment, rate and term to estimate loan payments. Bring those numbers to a consultation to discuss your purchase options.