Lease or Buy? A Moncton Guide for Good Credit Drivers
Good credit gives you choice. In this post, New Wave Auto Sales in Truro, Nova Scotia looks at Lease or Buy Moncton options so you can pick the best deal before you head to the showroom.
Why Good Credit Opens Both Doors
A credit score above 700 means you usually qualify for low‑rate loans and prime lease programs. With price breaks on interest or money factors, the question shifts from “Can I get approved?” to “Which plan fits my life?”
Government tools such as the Office of Consumer Affairs Lease or Loan Calculator help you run the numbers ahead of time “ISED Canada“”ISED Canada“.
How Leasing Works in New Brunswick
Lower Payments, Higher Rules
Leasing often means payments that run 20 to 30 percent below an equivalent loan. That can free up cash for savings or higher insurance deductibles.
Mileage Caps
Most prime leases in Canada carry 20,000 km per year. Surpass it and you pay 10 to 20 cents per extra kilometre.
End‑of‑Term Choices
Return, buy‑out, or swap into a new ride. Residual values are rising in 2025, but they still drop faster on large SUVs than on compact crossovers “Canadian Black Book“.
Real Example: Jenna’s Three‑Year Lease
Jenna from Moncton, credit score 755, chose a 2024 Mazda CX‑5 GS at $36,000 MSRP. A 36‑month lease at 5.9 percent works out to $489 monthly plus tax. Her plan: trade the CX‑5 for an EV when new charging stations open in Dieppe in 2028.
How Buying Works
Equity Builds With Each Payment
Loans may cost more per month, but every cheque raises your ownership stake.
No Distance Limits
Drive to Halifax every weekend? Owning keeps life simple.
Resale Control
Pick the sale date that matches your next purchase. Canadian Black Book predicts average used values will drop 9.3 percent over the next 10 months “Canadian Black Book“, so timing matters.
Real Example: Ahmed’s Five‑Year Loan
Ahmed lives in Riverview and drives 30,000 km a year for work. He bought a 2023 Toyota RAV4 XLE for $39,995 at 3.9 percent over 60 months. Payment: $739 monthly. After four years, and 120,000 km, Ahmed still expects $18,000 trade‑in value, giving him solid equity for his next truck.
Cost Breakdown: Lease vs Loan for a Compact SUV in Moncton
| Item | Three‑Year Lease | Five‑Year Loan |
|---|---|---|
| Sale Price | $36,000 | $36,000 |
| Down Payment | $0 | $4,000 |
| Monthly Payment | $489 | $739 |
| Total Paid at Term End | $17,604 | $44,340 |
| Residual / Equity | $19,080 residual | $18,000 estimated equity |
Use the CAA Driving Costs calculator to add fuel, insurance, and maintenance to your own numbers “carcosts.caa.ca“.
Taxes, Residuals, and Depreciation in Atlantic Canada
- HST Timing. On a lease you pay tax on each payment. On a loan you pay it upfront.
- Residual Risk. Residual is set when the lease starts. If real‑world value falls faster, you just return the car. If it holds value, a buy‑out can be a bargain.
- Depreciation Curve. Trucks now hold value longer than sedans in 2025 “Canadian Black Book“. Factor that in if you plan to buy out a lease.
How Driving Habits in Moncton Affect Your Choice
- Commute length. Heavy drivers lean toward buying.
- Terrain. Winter roads and salt mean faster wear—maintenance add‑ons in leases help.
- Lifestyle changes. If you expect a family addition, a three‑year lease lets you size up sooner.
Five‑Step Checklist
- Confirm your credit score with Equifax or TransUnion.
- Estimate yearly distance honestly.
- Run the numbers with the Lease or Loan Calculator.
- Check residual values on Canadian Black Book.
- Compare insurance premiums for both paths.
Further Reading from New Wave Auto Sales
- Zero Down Payment Car Loans in St. John’s – Are They Possible with Bad Credit?
- Dealership Financing vs Bank Loans: A Comparison for Halifax Car Buyers with Excellent Credit
- In‑House Auto Financing in Halifax: A Game‑Changer for Car Buyers with Bad Credit
FAQ
Is leasing cheaper than buying for good credit drivers?
Often yes for monthly cash flow, because interest (money factor) rates are low when credit is strong. Over a full ownership cycle, buying can cost less if you keep the vehicle.
What happens if I move from Moncton to Truro during my lease?
Notify the lessor. Taxes and registration may change, but the contract remains.
Can I pay off a lease early?
Most leases do not allow early payoff without heavy penalties. A loan offers more flexibility.
Does a lease hurt my ability to get a mortgage?
Both leases and loans count as debt in your TDS ratio. A shorter lease term can keep total obligations lower.
People Also Ask
How many kilometres are allowed on a typical Moncton lease?
Prime‑tier programs average 20,000 km per year.
Is the buy‑out price negotiable at lease end?
In most cases it is fixed, but dealers can offer rebates or loyalty credits toward a new lease.
Do I pay HST on the residual value?
Yes. HST applies when you exercise a buy‑out.
Are wear‑and‑tear charges negotiable?
Minor scuffs are usually billed by set tables, but purchasing excess‑wear protection can cap costs.
Key Takeaways
- Lease or Buy Moncton choice hinges on distance, cash flow, and long‑term plans.
- Good credit unlocks the lowest rates and widest programs.
- Use calculators and residual data to make an apples‑to‑apples comparison.
- Talk with New Wave Auto Sales in Truro to see current promotions across Atlantic Canada.
That wraps up our Lease or Buy Moncton guide. Drop by the dealership or call our finance team. We serve drivers from Moncton, Dieppe, Riverview, and right here in Truro.