New car dealership financial service offices have effectively promoted the 84-month (seven-year) finance term to compete directly with the lower 48-month lease payment. Using the same example, an 84-month loan for a $40,000 vehicle would result in a monthly payment of $476.19, which is very close to the 48-month lease payment.
I compared several 48-month lease calculations with 84-month loan calculations for various popular vehicles. The lease payments ranged from $12 to $55 less per month than the loan payments. As mentioned, OEMs often alternate between offering better interest rates for leases one month and better rates for financing the next. Therefore, it’s crucial to always request comparable quotes for both payment options.
In conclusion, you’ve learned about the term lengths that can equalize the monthly payments of a lease and a loan. With this knowledge, you can create a shortlist of new vehicles you’re interested in and use a lease/loan calculator to see if they fit your budget.
Go to CarCostCanada.com and use their build, price and calculator tools to come up with your vehicle shortlist and put you on the right road to making the best vehicle purchasing decision. CarCostCanada is a one-stop shopping tool that allows you to do all the pricing research on one website as opposed to bouncing around several OEM websites.
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