For any business Commercial truck leasing and buying, both options are available and have unique advantages and disadvantages depending on your business needs or requirement.
As per the current scenario, 15-25% population of Canada apply for the auto loan for buys their vehicle by most people follow alternative option that is truck and trailer leasing.
Difference Between Leasing and Finance Agreement
Proprietorship of the vehicle is the main difference between Leasing and Finance Agreement. With a commercial truck leasing agreement, you have to return your vehicle to the dealer after completion of contact but you will not get ownership of the vehicle and you can renew your contract for the next financial year.
In Finance agreement you are paying EMI on monthly basis and after completion of loan you will get the onwership of your vehicle.
But leasing is much cheaper than finance agreement and even you are more updated with new technology of the vehicle.
How do Leasing and Finance Agreement work
When you are planning for buying a vehicle then you have to apply for the auto loans and there are many process is available for approval of loan once it approved then its responsbility to make monthly payment and it may be for long terms loan. Once you get your vehicle but but you can change it easily and its too costly.
On other hand if you apply for commercial truck leasing then you need to make payment for a short term. Till then you can easily use that vehicle without any tension. If manufacture company update the technology then you have an option to replace your vehcile and lease for new one.
Truck leasing and Buying in canada
Buying and Leasing a vehicle both are different options and have some pros and cons. It depends on your cash flow and business which option is good for your business. Before opting for any option take proper information, Prafton finance will help you with truck and trailer leasing and buying.