Chapter 4: Deciding Between Leasing Or Buying

•  Consider the pros and cons of leasing or buying
  
•  Leasing questions
  
•  Buying questions
  

Section Introduction:

Every vehicle consumer has to decide whether to buy or lease and determine what he or she can afford. In this chapter buying and leasing issues are discussed to help consumers decide in an informed way on which of these two options works best for them, without missing key pros and cons. Included here are the questions that must be answered when making this critical choice. There are also two sets of questions that you should answer if you are unsure which option is best for you.

Read this chapter to find out whether you should buy or lease.

Consider the pros and cons of leasing or buying

There are key questions you should answer when deciding between buying and leasing. Answer these questions for yourself and then see below for an indication of whether you should lease or buy:

• How often do you replace your vehicle?
  
• Do you want to drive a better vehicle than you can afford to buy?
  
• How much do you enjoy buying, trading and selling vehicles?
  
• How much do you have for a down payment?
  
• What is your annual mileage?
  
• How well do you take care of your vehicle?
  
• Will you use the vehicle for business or pleasure?
  

Consider leasing:

• If you like to replace your vehicle every four years or less.
  
• If you want to have lower monthly payments for a more expensive vehicle than you would pay to purchase that same car.
  
• If you are not comfortable striking deals for trade-in, sale or purchase of a vehicle.
  
• If you want to avoid high initial costs when purchasing a vehicle.
  
• If your mileage is under 20,000km per year.
  
• If you take good care to maintain your vehicles and can avoid scrapes and bumps in the course of regular usage.
  
• If you plan to us the vehicle for business so that tax deductions become a factor.

Consider buying:

• If you like to hold on to a vehicle for five years or more.
  
• If you are comfortable striking deals for trade-in, sale or purchase of a vehicle.
  
• If you can afford to cover the higher initial costs of a purchase or financing deal.
  
• If your mileage is more than 20,000 km per year.
  
• If it is important to you to own your vehicle outright, fix it or maintain it yourself and keep it in the condition you want.
  

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