Leasing Vs Buying A Car in Canada — The Real Math

Should you lease or buy a car in Canada in 2026? In this video, we run the actual numbers — not the dealer's pitch, not just the monthly payment comparison, but the full total cost of ownership over a realistic 9-year period. Using verified 2026 data from AutoTrader's Q1 2026 Price Index, Statistics Canada, Ratehub, WOWA, Go Auto, and the Canada Revenue Agency, we show you exactly what leasing versus financing a $45,000 vehicle actually costs over time, where the hidden lease charges appear at contract end, and the one scenario where leasing genuinely comes out ahead.

With the average new car price at $62,830 according to AutoTrader Q1 2026, the average loan rate at 6.5% per Statistics Canada, and total monthly car ownership costs sitting at $1,373 per month per Ratehub's 2026 analysis, this is one of the biggest recurring financial decisions most Canadians make — and one of the least understood. We cover money factors, residual values, the km overage trap, early termination costs, the CRA lease deduction for business owners up to $1,050/month, and the negotiation strategies dealers hope you never learn.

Legal Disclaimer:
This video is for general educational and informational purposes only. It does not constitute financial, legal, or tax advice. All figures used are approximate and for illustrative purposes based on publicly available data at the time of recording. Actual costs vary based on vehicle, province, credit score, and individual circumstances. Always consult a licensed financial adviser, accountant, or tax professional before making any vehicle financing decisions. True North Finance With Ryan is not a licensed financial adviser.

SOURCES:
1. AutoTrader Canada, Q1 2026 Price Index — https://go.trader.ca/autotrader-price-index-q1-2026/
2. AutoTrader Canada, Q4 2025 Price Index, December 2025 — https://www.guideautoweb.com/en/articles/80577/average-price-of-new-vehicle-in-canada-drops-to-63-665/
3. Ratehub, Total Cost of Car Ownership Canada 2026 — https://www.ratehub.ca/blog/what-is-the-total-cost-of-owning-a-car/
4. Statistics Canada, Average Car Loan Interest Rate October 2025 — https://www150.statcan.gc.ca
5. WOWA, Car Loan Interest Rates Canada 2026 — https://wowa.ca/car-loan-interest-rates-canada
6. Finder Canada, Average Car Payment Canada 2026 — https://www.finder.com/ca/car-loans/buying-a-car/what-is-the-average-car-payment
7. Yahoo Finance Canada, Auto Costs Canada Higher Than Expected, February 2026 — https://ca.finance.yahoo.com/news/auto-costs-canada-lot-higher-173405231.html
8. Go Auto, Leasing vs Financing Canada — https://www.goauto.ca/finance/finance-vs-lease
9. BrokerLink, How Car Leases Work in Canada 2025 — https://www.brokerlink.ca/blog/how-do-car-leases-work-in-canada
10. ThinkInsure, Lease vs Finance Canada 2026 — https://www.thinkinsure.ca/insurance-help-centre/lease-vs-buy-a-car-best-choice.html
11. WealthNorth, Lease vs Buy Car Calculator Canada 2026 — https://wealthnorth.ca/personal-finance/lease-vs-buy-car-calculator/
12. MoneyMetrics, Car Lease vs Finance vs Buy Calculator Canada 2026 — https://www.moneymetrics.ca/calculators/vehicle
13. Canada Revenue Agency, Deductible Lease Costs for Motor Vehicles 2026 — https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/motor-vehicle-expenses.html
14. Financial Consumer Agency of Canada, Vehicle Lease or Loan Calculator — https://ised-isde.canada.ca/site/vllc/en/lease-loan-calculator/calculators
15. Empty Tank, AutoTrader Q1 2026 Price Index Report — https://emptytank.ca/2026/05/03/auto-trader-releases-q1-2026-price-index/