Lease VS. Finance

It can be difficult to decide between leasing and financing; everyone has different financial and driving requirements. Whether you are looking to lease or finance your next vehicle, our dedicated team of Financial Service Managers with over 25 years of combined vehicle finance experience are here to help.
 

Lease

If you enjoy driving a new vehicle every two to four years, want lower monthly payments, like having a car that has the latest safety features, drive an average amount of kilometers, or desire overall lower maintenance costs, then you should consider leasing your vehicle.
 
At Sisley Honda, we lease our vehicles exclusively with Honda Canada Finance Inc. (HCFI). HCFI leases have attractive rates, included GAP Protection, and guaranteed lease-end values. We also offer Lease Guard to help protect you against some possible lease-end charges.
 
Lease-End Options:
  1. Return your vehicle to Sisley Honda and lease or purchase a new Honda vehicle
  2. Schedule an appointment with Sisley Honda to return your Honda vehicle
  3. Purchase your existing Honda vehicle for the remaining amount shown on your lease contract
 

Finance

If you enjoy the idea of owning your vehicle, prefer paying off your loan, want to customize your vehicle, drive more than an average amount of kilometers, hold onto vehicles for a longer period of time, or do not like the risk of possible lease-end charges, then you should consider financing as an option.
 
Our dedicated team of Financial Service Managers will help arrange customized financing to fit your needs and budget. We represent many Canadian financial institutions and will secure the rate and term that best suits your needs. Many of our vehicles also have finance specials through Honda Canada Finance Inc. (HCFI)!
 
The Benefits of Financing Your Vehicle:
  • You are the owner of the vehicle
  • All retail loans are open; you may pay out the finance contract at any time without pre-payment penalties
  • Simple interest method to calculate interest charges
  • No kilometer charges
  • No wear and tear charges
  • Build equity
  • Flexible terms
  • Once all the payments have been made, you own the vehicle
Things to Consider:
  • Monthly finance payments are typically higher than monthly lease payments as you are financing the total cost of your vehicle
  • You are responsible for insurance coverage. Required coverage is typically detailed in your finance agreement
  • You are responsible for maintaining the vehicle. A maintenance schedule is outline in the owner's manual

FAQ

I typically grow tired of my vehicle in four to five years. Should I lease or buy?

You should probably lease.

Typical finance terms are 60-72 months -- Why pay the higher payments if you are changing your vehicle before the loan is paid?

When you finance your vehicle, you bear the cost of declining resale values.

My car was involved in a severe accident and the repair cost was close to $10,000. Who would be worse off: a person who leased or the one who financed?

The person who financed is in trouble here because the accident will cause a considerable drop in the vehicle's value.

Providing the vehicle is repaired correctly, the person who leased can return the vehicle to the leasing company.

The leasing company then absorbs the depreciation caused by the accident.

What is the difference between an OPEN versus CLOSED lease?

The consumer is responsible for the lease-end value in an OPEN lease.

Conversely, the leasing company is responsible for the lease-end value in a CLOSED lease.

Typically, many third party leasing companies have OPEN leases, whereas Honda Canada Finance has CLOSED leases.

A CLOSED lease protects the consumer against vehicle depreciation.

What is GAP Protection?

Most leases have automatic built-in Gap Coverage, while car purchase loans almost always do not.

Gap Coverage, or Gap Insurance pays the difference between what you owe on your loan or lease, and what your vehicle is actually worth if your vehicle is stolen or destroyed in an accident.

Why is gap insurance important?

In these days of long-term loans, refinanced loans, and little or no down payment, to be "upside down" -- to owe more on your loan or lease than you car is actually worth is a regular occurrence.

If your vehicle is destroyed, you could be "upside down" thousands of dollars without GAP Protection.

Honda Canada Finance leases have GAP Protection Included!

If you have any further questions or concerns regarding leasing vs. financing, contact us at 905.695.888 ext. 314.