When it’s time to invest in a new vehicle, you will need to decide how you want to pay for it. Unless you plan on paying cash for the full price of the vehicle, you’ll be looking at either financing or leasing your new vehicle. 

When considering financing or leasing your next vehicle it is very important that you know the difference between leasing and financing. 

When you lease a vehicle, you have the right to use for the agreed number of months and kilometers. When your lease ends, you may have two options- you can return the vehicle or buy the vehicle for the additional agreed-upon price. 

The monthly payments on a lease are usually lower than the monthly finance payments on the same vehicle because you are paying for the vehicle’s expected depreciation during the lease period. 

To determine if leasing fits your situation- 

• Consider looking at the beginning, middle and end of a lease cost. 
• You should also compare different lease offers and terms, including the kilometer limits. 

You can usually negotiate a higher kilometer limit, but that normally increases the monthly payments as well because the vehicle is depreciating more during the term of the lease. 

Some very important key points to remember is that when leasing, you are responsible for excess war and damage and any missing equipment.