Financing vs. Leasing at Fraser Chrysler

Shopping for a vehicle can be stressful and back-breaking for many. However, it is still easier than deciding between financing and leasing the new vehicle, especially for those unaware of the advantages and disadvantages of both. Financing gives you complete vehicle ownership as you pay the monthly installments to keep it eventually. On the other hand, leasing is like renting out a car, SUV or pickup truck for a said period of time. Wonder which one will be most beneficial for you? Read on as we underline some benefits and downsides of both to help you make an informed decision. Once decided, get the process started with one of Oshawa’s most reliable and trustable dealerships, Fraser Chrysler.

Difference Between Financing vs. Leasing

Financing or leasing a vehicle majorly depends on various reasons, including your expectations, budget, interest and usage. Below are some of the significant differences between the lease and finance that may help you come to a decision.

Monthly Payments

When you choose to finance, you are required to make monthly payments with interest to pay off the loan you took for owning the vehicle. But when you opt for a lease, you only pay the vehicle’s depreciation value, rent charges and other nominal fees, which is why it is much more affordable than financing.


Getting rid of your car is easier with both financing and leasing. You can sell or trade your financed vehicle and use the money to pay off the loan. In the case of leasing, you can opt for early termination by paying the required charges to end your contract or term.

Distance Restrictions

When you own a car, you can drive it as far and as often as you want, which is why many people prefer financing over leasing. Because in leasing, you often get an annual limit, and you have to pay the incurred charges if you surpass that.

Why Opt for Financing?

Everyone has their reasons for choosing one over the other, but to offer you more clarity on why you should or shouldn’t opt for financing, here are a few things to consider.


  • Financing helps build equity; the vehicle will be yours as you pay off the loan.
  • You can get plenty of financing options available in the market and opt for the one that matches your needs and fits your budget.
  • Financing plans are less complicated, which makes it easier to read between the lines while going through the financing conditions.
  • Depending on your budget, you can decide whether you want to make smaller payments by opting for longer terms or vice versa.
  • When you finance a new Chrysler, you can customize it to upgrade the design and capability features as you wish.


  • The monthly installments in financing are higher than leasing.
  • You need to bear the cost of any repair or part replacement once your warranty gets over.

Why Opt for Leasing?

Like financing, leasing has its advantages and drawbacks. Here’s what you should know about leasing while shopping for a new or pre-owned Chrysler.


  • The monthly leasing payments are lower than you for financing a car.
  • In most cases, routine maintenance and repairs are covered under a warranty while you choose to lease a vehicle.
  • If you love driving new cars now and then, leasing is the perfect option. You don’t have to make long-term commitments with your Chrysler and terminate the term as early as you want.
  • The future depreciation value will not affect the monthly fees you pay for leasing the vehicle.
  • With leasing, you also don’t have to worry about selling or trading your car when you want to buy a new one or get rid of the existing one.


  • You must bear the penalty or cost of any excessive wear and tear your vehicle may undergo.
  • The conditions or a term for leasing may be complicated to understand, especially for those new to exploring this feature.

If you have any more questions and doubts regarding financing or leasing, reach out to our expert representatives at Fraser Chrysler. We are committed to providing the best-in-class services to ensure maximum customer satisfaction.