A car lease lets you drive a new vehicle without paying a large sum of cash or taking out a loan.
To lease a car, you simply make a small down payment — less than the typical 20% of a car’s value you’d pay to buy– followed by monthly payments for the term of the lease. When the term expires, you return the car.
Leasing is more beneficial than buying when you:
• Don’t have the cash to buy the car.
• Want to drive a vehicle that’s out of your purchase price range.
• Won’t likely exceed the mileage cap in a contract—usually between 20,000 and 25,000 kilometres per year.
• Can take good care of the car’s exterior and interior, paying particular attention to avoid nicks, spills and other cosmetic damage.
• Expect to lease another car when your vehicle’s current contract expires.