There is no right or wrong answer when it comes to financing your new vehicle. Compare the following advantages of leasing and buying:

Advantages of Leasing

• Lower monthly payments.

• Less cash required upfront.

• Taxed on monthly payments only.

• Chance to drive a better vehicle than you could afford to purchase.

• Lease terms are shorter than the length of car loans.

• Leased vehicles are under warranty for most or all of the lease term.

• More options at the end of the lease: purchase, trade-in, or return.

Advantages of Buying

• No restrictions on the number of kilometers driven.

• Cheaper in the long term if you use the vehicle for more than five years.

• Freedom to sell, customize and service the vehicle as you wish.

• A loan is easier to obtain than a lease if you have a poor credit rating.

• Good choice if you are hard on your vehicle as covering the cost of additional damages to leased cars can be expensive.

The ultimate decision depends on personal needs like savings, vehicle preferences, and lifestyle factors. Consider the following to assist you in making your choice:

1.How much money can you afford to spend on a new vehicle?

2.How long do you plan on keeping your vehicle?

3.How much do you drive each year?

4.Do you have a guaranteed income to cover payments for the duration of a lease?