Comparison
Monthly rental vs leasing
Two different products that look similar on a monthly statement. The difference is what happens when your plans change.
The short version
If you know you need a car for three years or more and your life is stable, lease. The monthly number will be lower. If you do not know how long you need it, or your situation could change inside a year, rent monthly. You are paying for the right to walk away, and that right is worth real money to the people who need it.
Where the money actually goes
| Monthly rental | Lease | |
|---|---|---|
| Commitment | Month to month | Typically 24–48 months |
| Credit check | None | Yes, and it gates the rate |
| Down payment | None | Often thousands |
| Insurance | Included, or use your own | Your own policy, mandatory |
| Maintenance | Included | Usually yours after the warranty period |
| Winter tires | $14.99 a day when you want them | You buy and store them |
| Over-mileage | 18¢/km on cars | Commonly 10–20¢/km, billed at the end |
| Ending early | Give notice | Buy-out or transfer, often costly |
| Damage at the end | Assessed on return | Wear-and-tear charges are common |
The costs a lease quote leaves out
A lease advertised at a given monthly figure is not the monthly cost of having the car. Add your own insurance, which in much of the GTA is not modest. Add winter tires and the storage of the other set. Add maintenance once the included period ends. Add the licensing and the down payment amortised across the term.
None of that is dishonest on the dealer's part — it is simply that a lease payment covers the vehicle and a rental rate covers the vehicle plus most of the running of it. Compare like with like before you decide which is dearer.
Where leasing genuinely wins
Over a long, stable term, a lease is cheaper per month, and you get to choose the exact car, colour and options. If you will keep it for three or four years and you know that now, take the lease. We are not going to pretend otherwise.
Where renting wins
Uncertainty. A contract that might extend or might not. A settlement that might land in six weeks or six months. A newcomer without the credit history to lease at a sane rate. A household that wants a second car for the summer and not for the winter. In all of those the lease penalty for being wrong is larger than the premium you pay to rent.
Our monthly programs · Or compare against financing
Common questions
Is monthly rental more expensive than leasing?
Per month, usually yes. Over a short or uncertain period, often no — once you add the insurance, maintenance, winter tires and down payment a lease requires, and the cost of getting out of it early.
Can I lease if I have no Canadian credit history?
It is difficult and the rates offered are usually poor. Monthly rental requires no credit check, which is why it is common among people who have recently moved to Canada.
Do I need my own insurance for a monthly rental?
No. You can take our coverage, or use your own transferable policy and pay less. Either way you are covered before you drive away.