Leases come with pros and cons and it’s important to know the facts before you dive head first into such an important decision. If you’re considering leasing a car for the first time, you’ll need a little more information about how it works.
So what’s the difference between buying and leasing a vehicle? The answer is similar to buying versus renting a home. When you rent a home, you don’t completely own it but you’re paying for the right to live there. When you lease a car, you pay the dealership for the right to drive it, but you’re not the owner.
Like an apartment or house rental agreement, you get to choose from varying lengths of contracts. Some lease agreements run for three years and can last up to five years. It may be possible to negotiate a shorter lease term but different dealerships have different terms and conditions – depending on how long the lease is, the rates may change. Be sure to check with your chosen dealership and find out how they structure their long and short-term leases.
Leasing has another advantage: your monthly payments will be lower. A lower car payment every month means more savings for you and your family. Maybe one more tank of gas for the yearly road trip or one more night at the favourite camping spot? The possibilities are endless.
Car lease requirements in Manitoba
The process of leasing a car is almost the same as buying one. You’ll need to bring all your paperwork (a valid ID, your driver’s license, recent pay stubs) to the dealership when you apply for your lease. After that, you’ll choose a car the same way you would if you were buying – by test driving until you find your favourite!
Some dealerships in Winnipeg allow you to negotiate a shorter lease term, which is great if you just want to try out a lease to see if you like it. The biggest thing to remember is that negotiating a short-term lease sometimes comes with different conditions than a long-term lease. Depending on your chosen dealership, you might have slightly higher payments or higher interest rates, among other conditions.
Credit score for leasing a vehicle in Winnipeg
The most common question about leasing is what credit score you’ll need in order to qualify for an agreement. If your credit score falls between 560 and 620, you should be good to go. At Birchwood Credit, however, we look at the bigger picture of your credit history and consider factors that a simple credit score might miss. We will always find you a solution regardless of your credit history, so you can feel comfortable knowing we have your back.
Ready to get started?
Making the decision to lease a new car is big, and we don’t take it lightly. All the information out there can seem overwhelming but we’re here to help you every step of the way. If you think you’re ready to start your lease application, contact our Birchwood Credit team to get the ball rolling.
If you’re still curious about leasing and want to know more about the process, read the benefits of leasing a vehicle on our blog. We can’t wait to see you at Birchwood Credit!