Deciding whether to lease or purchase is a complicated question. You are the only one that can decide on which option suits you best.

In this article, we will take a look at a few of the important questions you need to answer before making this important decision. Please answer for yourself the following:
Do you want to drive a new car every two to four years without major repair costs? - It is Lease
Do you want long term cost savings? It is Purchase
Do you want lower monthly payments and a smaller down payment? It is Lease
Do you want to pay off your vehicle and be debt free for a while? It is Purchase
As you can see, your lifestyle and personal factors weigh heavily in this decision. How you decide the lease vs. purchase question depends entirely upon what your ultimate goals are both for your lifestyle and your pocketbook. There are some fundamental differences in the auto lease versus purchase. When it comes to auto lease financing, you are paying for the depreciation of the vehicle during the term of the lease. When you are buying the car, you are paying for the price of the car itself.
The lease payments also include financing charges. You are paying interest on the money that the lease company has tied up in the car during your lease period.
If you decide to purchase your car, then your monthly payments are not only going towards interest and depreciation, but you are gaining equity as well. Keep in mind that once you have paid off your car loans, you are able to sell your car and regain your equity. By contrast, once your lease is over, you hand the car back to the dealer, walk away and get nothing. It is no wonder that people get confused by the lease vs. purchase question!

Who is the vehicle's owner?
Financing
This is a straight path to vehicle ownership. All you have to do is usually pay an amount as down payment, keep up your installments, and enjoy complete ownership of your car after successful completion of the finance period.
Leasing
Here, the lending institution remains the legal owner of the vehicle throughout the term of the lease. You do not own the car, but rather pay for using it for a set amount of time. This is why lease payments are lower than finance payments.
What about up-front payments?
Financing
A down payment is sometimes necessary when financing a vehicle, and is part of the agreement between you and the lending institution. You can use the trade-in value of your old vehicle as down payment, or utilise any equity to fulfill this requirement. The actual amount to be paid up-front usually depends on multiple factors, including the make and model of the car, your credit score and the lending institution's requirements.
Leasing
Most of the time, this option frees you from paying any amount up-front. All that is usually required is payment of the first month's installment, the security deposit, the acquisition fees and other related taxes and fees. But you can always customize your lease by opting to pay a down payment, which will work towards reducing your scheduled payments.
What about the vehicle's future value?
Financing
Your vehicle's market value will depend on its depreciation over the finance term and on how well it has been maintained throughout its life. Factors that can significantly reduce a car's value include accidents and irregular maintenance. The best way to take care of your investment is to follow all recommended service timelines in your car's booklet, and to always take your vehicle to a factory-authorized repair and service facility.
Leasing
A vehicle's future value should only be considered here if you intend to purchase it during or at the end of the lease term. If that is not the case, you simply hand the car back to the financial institution upon expiry of the lease. However, you have to be mindful of all mileage limits and wear and tear guidelines throughout the lease term or you could end up paying extra upon returning the car.
What happens at the end of the term?
Financing
Once you have successfully made all your payments and met all conditions on your contract, the vehicle is all yours to keep. The financing institution will issue you a Lien Release declaring that the car is completely paid off, and will then be yours to enjoy without any scheduled payments!
Leasing
Multiple options become available to you when you approach the end of your lease term. You can either return the vehicle and close the agreement or return it and lease a brand new car for another term. You can also purchase your vehicle during or at the end of your contract, or trade it in before the lease is over. We can happily customize your lease contract to suit all your needs!
Which vehicles are the best to lease?
The technique here is to lease vehicles that retain the best book value after the term of the lease. This is because the less a car depreciates over the years, the less you have to pay for its use. Reviewing lease ratings will give you an idea of the cars that retain their value most.
Deciding whether to lease or purchase is a complicated question.