Here at Western Isuzu, we know you probably have a few questions when it comes to financing and leasing options for your next business vehicle. We understand that when you choose Isuzu, you are not just choosing another truck but will be making it customized to your specific business needs. Just like how each business is different, each lease and finance contract is different. We have partnered with local vendors and even have an in-house leasing company to ensure we can get you into the right vehicle with the right upgrades to keep your business moving forward.
We pride ourselves on being your one-stop solution for all your medium-duty truck needs. Whether you plan on adding a box to the Isuzu chassis or adding on the equipment you need to get your work done, our team of experts is ready to work for you. Instead of having to coordinate all of the necessary pieces to make your dream business truck a reality, let our team of professionals coordinate all the pieces so all you need to do is sign the paperwork. Even better, they can bundle it all into one contract so that your lease or finance payment includes the upgrades instead of having to finance them separately.
Great question! Let’s start with what financing means.
When you finance a vehicle you are effectively making those “X number of easy payments for Y term” that you hear about on tv. At the end of your term, the vehicle is yours. This is one of the biggest differences between financing and leasing. During the finance term, you will be paying for the entire vehicle with the trade-off of the higher payment being that you will own the vehicle outright at the end of the term. Financing can be ideal when you will be putting a lot of kilometres on the vehicle or using it for severe duty applications.
Leasing can provide some greater financial freedom, but there are also limitations to leasing to be aware of. Let’s start with what leasing is and how it differs from financing.
With financing, you are making payments for a set term with the knowledge that at the end of the term you will own your Isuzu Truck. Leasing is both similar and vastly different in that you still make payments for a set term, however, you will not own the vehicle at the end of the term. Although you are not paying for the full vehicle during your lease term, you do have an option to purchase the vehicle outright for a predetermined price once the lease is over. This can lead to a couple of advantages over financing such as:
- Lower payments.
- Option to drive a newer, better vehicle for a lower monthly payment.
- Lower repair costs; oftentimes manufacturer warranty will still be in effect during the term of the lease and cover most repairs.
- No trade-in hassle at the end of the lease.
- You only pay for the portion of the vehicle you are using, which means you are also only taxed on the portion you are using.
- Potential tax savings
With that in consideration, there are also a couple of things to keep in mind with a lease. For instance, there is often a kilometre restriction, and the vehicle needs to be in good condition when it is returned. Excess wear and tear on the vehicle is also your responsibility above and beyond the lease payments. Additionally, while repair costs can be lower through leasing, you are still responsible for repairing and maintaining the vehicle.
When you are considering leasing, often times the promise of leasing a new vehicle at the end of the term may sway your decision one way or the other. With a lease agreement, you will not only be given information such as the term, interest, and payments, but you will also be given the payout amount. This means that from day one, you will know how much it would cost to buy out the lease if you decided you loved the vehicle and wanted to keep it, or could exercise an equity opportunity. All of the same rules of leasing apply with the difference being that instead of giving the vehicle back at the end of the term and walking away, you would pay the remaining value of the vehicle plus taxes.
Connect With An Expert
When it comes to your business, you are the expert. When it comes to finding the right vehicle and coordinating a term and payment type that makes sense for your business, let us help you make an informed decision. Connect with one of the members of our sales team to explore your options and see what is right for you.