Leasing vs financing your car: Which saves you more [Video]

Is it time for you to get a new vehicle?

About one-third of Canadians purchased their vehicle outright in 2021, according to a report from Insurance Insight. The other two-thirds of car buyers financed or leased their vehicles.

Both leasing and financing are programs that make owning a safe, modern vehicle more achievable. Leasing and financing have benefits and drawbacks, depending on your particular situation.

Below, I’ll discuss some of the pros and cons of both so you can make the most informed decision about your next car.

How financing a car works

Financing a vehicle is a pretty straightforward process. Typically, you’ll make a down payment of around 10 to 20 per cent of the value of the car. Then, you’ll finance the remainder over two to six years.

While you’re paying off the auto loan, the lender holds a lien on the vehicle, allowing them to repossess it if you fail to make payments as …