Kelowna Kia

Financing vs Lease

What are your options?

You have two main options for the new or used vehicle of your choice; you can either buy the vehicle or lease it. If you buy the vehicle, you then have another two options of either paying the full price of the vehicle upfront or paying for the vehicle over a fixed period of time by financing the vehicle.

When you buy the vehicle, you pay the full cost of the vehicle (either upfront or over time) and then become the owner of that vehicle. When you lease the vehicle, you only pay for the portion of the vehicle during the time that you actually use it and don't actually own the vehicle.


Who Owns It? Whether you pay for the vehicle with cash, or finance it and make monthly payments, either way you own it. Of course, if you're financing it, you will have to meet the obligations the lender requires, like a certain down payment amount and keeping your monthly payments on time. If you don't, the lender may look to take ownership of the vehicle to replace their investment.

Up-front Costs? If you are financing it, the lender will often request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.

Future Value? Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. Be smart and protect your investment with regular scheduled maintenance by our factory-authorized facility!

End of Payments? If you are financing, once you have paid off what you owe on your contract - that's it! You retain 100% ownership of the vehicle and it's yours to do with as you will. The lending institution will send you documentation as proof that the vehicle is completely paid off and all yours.


Who Owns It? You do not own the vehicle when you lease, the financial institution that you leased it through actually owns it. This is why you pay less per month in a lease than if you were to buy the vehicle. Instead, you are paying for the use of the vehicle during the time that you have it instead of the entire cost.

Up-front Costs? Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and any other applicable taxes and fees. However, similar to financing, if you want to lower your monthly payments you can make a larger down payment initially.

Future Value? In most leases you don't end up owning the vehicle so you don't have to worry about selling it at the end of your term, that's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.

End of Payments? Most people return the vehicle at the end of the lease term, but some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over and switch to a different leased vehicle. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.

Best Vehicles to Lease? The best vehicles to lease are those with the best value after the term of the lease, since they depreciate less you pay less. Review the lease ratings and speak to our helpful staff to see which vehicles retain their value and would be a good choice for you.

Which is better, lease or finance?

It depends on what's most important to you. All of us have different lifestyles and priorities in cars, life, and in finances. Car lease-versus-finance decisions must be made with your own lifestyle and priorities in mind. What's right for one person can be totally wrong for another. Luckily, we have a team of finance experts who are happy to help you find the best option for you.

Lease if you enjoy driving a new car every two or three years, want lower monthly payments, like having a car that has the latest safety features and is always under warranty, don't like trading and selling used cars, don't care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles, properly maintain your cars, are willing to pay more over the long haul to get these benefits, and understand how leasing works, then you should lease.

Finance if you don't mind higher monthly payments, prefer to build up some trade-in or resale value (equity), like the idea of having ownership of your car, prefer paying off your loan and being payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, expect lifestyle changes in the near future, and don't like the risk of possible lease-end charges, then you should finance.