In NU, what should I know about leasing vs financing for car loans?

In Nunavut, the decision between leasing and financing a car loan hinges on your financial priorities, driving habits, and long-term vehicle ownership goals. Leasing typically results in lower monthly payments as you're essentially paying for the vehicle's depreciation over the lease term, along with interest and the applicable GST (Nunavut does not have provincial sales tax, which is a notable advantage). This option is ideal for those who prioritize cash flow, enjoy driving a new vehicle every few years under warranty, and have predictable, lower mileage needs, as leases come with strict mileage limits and potential wear-and-tear charges at term end.

Financing, on the other hand, involves purchasing the vehicle outright, leading to higher monthly payments but allowing you to build equity with each payment towards full ownership. Once the loan is repaid, the vehicle is yours, free of mileage restrictions or return conditions, offering complete freedom for customization and long-term use. For 2025, while interest rates may remain elevated, the robust used vehicle market could make financing particularly attractive for those planning to keep their vehicle for an extended period and benefit from its eventual resale value. Ultimately, choosing between the immediate cash flow benefits of leasing and the long-term asset building of financing in NU requires a careful assessment of your personal circumstances and how you intend to use the vehicle.