A lower monthly payment than you would pay on a loan for the same vehicle
Pay tax only on the monthly payment rather than up front on the full price of the vehicle
The opportunity to drive a new vehicle more often
The comfort of knowing your new vehicle is under warranty for the full duration in the case of the short term
leases, (2 - 3 year leases averaging 20,000 km's / year)
You have options at lease end in most cases t
Return the vehicle
Buy the vehicle if your lease has a purchase option
Let your New Car Dealer sell it
Avoid tying up your money in a vehicle.
The disadvantages of leasing are:
Carrying costs can be high if you keep your vehicle on lease for a long period of time
Costly if the lease is not based on the number of kilometers you realistically expect to drive
You don't own the vehicle and do not build up "equity" with a lease as you do when you purchase a vehicle
Leasing is not for everyone. The least expensive way to obtain a vehicle is always to pay cash. If you cannot pay cash then the shortest borrowing term available to you will result in the lowest interest cost or "carrying cost". The faster you repay what you have borrowed, the lower your carrying costs. Carrying costs for a lease are higher than with a loan of the same term because you are only paying off the depreciation, and not repaying the entire value of the vehicle.
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