Auto Loans Lease vs. Buy

Leasing: Like Borrowing a Vehicle with a Fancy Exit Plan

When you lease a vehicle, you’re essentially renting it long-term—usually 2 to 4 years. You make monthly payments, but you don’t own the vehicle at the end. Instead, you can return it, lease something new, or sometimes buy it out if you’ve fallen in love.

Perks of leasing:

• Lower monthly payments than a loan
• You’re always driving something new-ish
• Fewer repair worries—most leases fall under warranty
• No stress about selling later

Things to watch for:

• Mileage limits—go over and you’ll pay for it
• You don’t build equity—you give the car back
• You’re on the hook for excess wear and tear (kids and muddy dogs beware)

Best for you if:
You love the idea of a new vehicle every few years, don’t drive a ton of miles, and like predictable payments without the hassle of reselling.

Buying: Like Settling Down with a Vehicle You Can Call Yours

When you buy a vehicle—either with cash or through a loan—you own it outright once it’s paid off. You can drive it for 15 years, pass it down to your teenager, or sell it when you’re ready to move on.

Perks of buying:

• It’s yours—modify it, drive it as far as you like, no questions asked
• No mileage limits
• Eventually, no payments (freedom!)
• More cost-effective in the long run

Things to consider:

• Higher monthly payments than a lease (at least at first)
• Once the warranty runs out, repairs are on you
• Depreciation hits hard in the first few years

Best for you if:
You drive a lot, plan to keep your vehicle long-term, or want to build ownership equity (something you can trade or sell later).

So... Lease or Buy?

Here’s a quick gut-check:

We Can Help You Steer

Still unsure? That’s totally normal. Come talk to the team at Prosperity Credit Union—we’ll help you crunch the numbers, consider your lifestyle, and find an auto financing option that fits like a glove... or at least like a well-worn set of winter tires.

Let’s take the stress out of car shopping—one kilometre at a time.