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

In Yukon, choosing between leasing and financing a car loan hinges significantly on your financial priorities and lifestyle. Leasing typically offers lower monthly payments and the flexibility to drive a new vehicle every few years, as you're essentially paying for the vehicle's depreciation over the lease term. However, it comes with strict mileage limits, potential wear-and-tear charges at lease end, and you don't build equity in the asset. For personal use in YT, the 5% Goods and Services Tax (GST) is applied to each monthly lease payment.

Financing, conversely, means you own the vehicle outright once the loan is repaid, building equity over time and providing complete freedom from mileage restrictions or customization limitations. While monthly payments are generally higher, you gain an an appreciating asset and avoid end-of-lease fees. In YT, the 5% GST is applied to the full purchase price, often financed into the loan amount.

Considering 2025 market conditions, elevated interest rates can impact both lease money factors and finance rates, making the total cost of borrowing a critical consideration for either option. Ultimately, this decision matters because leasing suits those who prefer lower short-term costs and frequent upgrades, while financing is ideal for buyers seeking long-term ownership, asset building, and unrestricted use, aligning with their personal financial goals.