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Welcome to my wall on Buying versus leasing a car. 

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Welcome to my wall on Buying versus leasing a car. 

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Within this wall, you will be able to find everything you wanted to know (and maybe you didn't realize you needed to know) about buying versus leasing a car.

There are four distinct sections: Websites, Videos, Images, Reflective Question, and a bonus additional information section. Each section provides some great tips, tricks, and details on what to consider as you look at the options for buy versus lease.

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As more and more people are considering buying or leasing electric vehicles (EV), this article outlines the pros and cons.

It also provides some good ideas if you want to lease an EV first, test it out (so to speak) for a few years, and then perhaps buy it at the end of the lease. This allows you to adopt or change your driving patterns (for long trips, how does having a EV modify your plans? how does winter impact the EV and trips, how do you find a charging station, what are the costs and plan for charging along the highways).

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If you are thinking about leasing an EV in 2022, you may be on to something. While leasing has a bad rap, getting an EV is probably the best decision you can make, especially with soaring gas prices. So, the question once again comes down to this; should you lease or buy an electric car?

Leasing is Not Like Renting a Car

One of the biggest misconceptions out there is that leasing is just renting a car. This is not even remotely accurate; while you do keep the car for a predetermined amount of time and return it, that is the only comparison with renting; everything else is pretty much the same as buying.

A major reason why people lease instead of buy is if you are looking for lower monthly payments; traditionally speaking, leases come with a lower monthly price than what you would pay if you were making installments towards owning the vehicle outright.

Another compelling reason why some consumers lease the car is for the tax benefits. We are not tax experts, and each person has their own unique circumstances.

But speaking in generalities, if you buy a car, you cannot write off the payments as a business expense. If you lease a car, then the lease payment can be written off.

Reasons to Switch to a Hybrid or EV

There are two options; you can either get a hybrid or an EV; in either case, you are spending less money on fuel which is going to make your wallet happy!

If you were to make a pro and con comparison of EVs versus gas-powered vehicles, it would become abundantly clear that EVs are a better option.

EVs only have a few moving parts when compared to gas-powered vehicles. With fewer moving parts, there is less maintenance and a lower risk of things breaking down.

EVs are less likely to suffer theft; right now, there is an epidemic of gas-powered vehicles having their catalytic converters removed by criminals. Since EVs do not have these components, thieves will not give your vehicle a second thought.

The government is offering rebates to help offset the upfront cost of purchasing an EV. When EVs first hit the market, they were expensive, but you can now get an EV that is priced similarly to what you would pay for a comparable gas-powered car.

Securing the Best Financing on a Hybrid or EV

You should make sure your credit score is as high as it possibly can be; this is going to help you qualify for the best terms whether you lease or buy an electric car.

While having a good credit score is important, to get the best terms, you need to work with a dealership in your community.

The dealership can access financing terms that are just not available to the general public. These dealerships know how to negotiate on your behalf and can help you find the perfect vehicle for your budget.

You should contact your local dealership today and start test-driving their full lineup of EVs and hybrids.

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Should You Lease or Buy an Electric Car in Canada?

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While leasing has a bad rap, getting an EV is probably the best decision you can make. But do you lease or buy an electric car?

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Useful Calculator for comparing lease versus buy 

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Useful Calculator for comparing lease versus buy 

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This link provides a calculator for you to compare the monthly payments for a lease versus the monthly payments for buying a car. It also allows you to adjust for different interest rates, down payments, and terms.

The benefit of this calculator is that it allows you to enter various financial scenarios which provide you with a chance to see which scenario works best for you.  Some scenarios could be:  Do I put a larger down payment on a purchase to lower my monthly payments?  Do I simply go with a lease to keep the payments at a lower amount?  Does a longer term with lower payments for a different interest rate work better for me?

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Vehicle Lease or Loan Calculator - Innova CMS

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Use this calculator to compare the costs to lease or loan a vehicle over time.

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This very informative website lists the key topics and questions you may be asking yourself with direct and honest answers to each question. The topics are:

Upside of leasing (tax benefits, drive trouble free, drive a higher end car than what you can afford to purchase)

Disadvantages of leasing (no equity, constant leasing circle where you always have monthly payments)

An alternative to long Loans (what are these and are they worthwhile?)

Comparing Loans & Leasing

Is it better to lease a electric vehicle (Great considerations to 'try' out an electric vehicle before purchasing one)

Tips to negotiating

How leases and loans differ (very informative table outlining each of the terms & definitions for each lease versus buy)

Each topic has a direct link to the answers without having to go through the entire article. In each topic, there are some useful tips and tricks to consider as a consumer.

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More on Car Buying and Leasing

On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you're not paying back any principal. Instead, you're just borrowing and repaying the difference between the car's value when new and the car's residual-its expected value when the lease ends-plus finance charges.
The Major Advantages of Leasing

You drive the car during its most trouble-free years.

You're always driving a late-model vehicle that's usually covered by the manufacturer's new-car warranty.

The lease may even include free oil changes and other scheduled maintenance.

You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford.

Your vehicle will have the latest active safety features.

You don't have to worry about fluctuations in the car's trade-in value or go through the hassle of selling it when it's time to move on.

There could be significant tax advantages for business owners.

At the end you just drop off the car at the dealer.

As attractive as a lease may appear, there are a number of disadvantages:

* In the end, leasing usually costs you more than an equivalent loan because you're paying for the car during the time when it is most rapidly depreciating.

* If you lease one car after another, monthly payments go on forever. By contrast, the longer you keep a vehicle after the loan is paid off, the more value you get out of it. Over the long term, the cheapest way to drive is to buy a car and keep it until it's uneconomical to repair.

* Lease contracts specify a limited number of miles. If you go over that limit, you'll have to pay an excess mileage penalty. That can range from 10 cents to as much as 50 cents for every additional mile. So be sure to calculate how much you plan to drive. You don't get a credit for unused miles.

* If you don't maintain the vehicle in good condition, you'll have to pay excess wear-and-tear charges when you turn it in. So if your kids are apt to go wild with markers or you're a magnet for parking lot dents and dings, be prepared to pay extra.

* If you decide that you don't like the car or if you can't afford the payments, it might cost you. You will probably be stuck with thousands of dollars in early termination fees and penalties if you get out of a lease early-and they'll all be due at once. Those charges could equal the amount of the lease for its entire term.

* With a few exceptions, such as professional window tinting, you need to bring the car back in "as it left the showroom" condition, minus usual wear and tear, and configured like it was when you leased it.

* You're still on the hook for expendable items such as tires, which can be more expensive to replace on a better-equipped vehicle with premium wheels.

* You may have to pay a fee when you turn in the vehicle at the end of the lease.

Some car buyers opt for longer-term car loans of six to eight years to get a lower monthly payment. But long loans can be risky, and these buyers might find leasing to be a better option.

Longer loans make it easy to get " upside down "-when you owe more than the vehicle is worth-and stay that way for a long time. If you need to get rid of the car early on or if it's destroyed or stolen, the trade-in, resale, or insurance value is likely to be less than you still owe.

Buying a car with a loan isn't the way to go if you want to drive a new car every couple of years. Taking out long-term loans and trading in early will leave you paying so much in finance charges compared with principal that you'd be better off leasing. If you can't pay off the difference on an upside-down loan, you can often roll the amount you still owe into a new loan. But then you end up financing both the new car and the remainder of your old car.

If your goal is to have low monthly payments and drive a new vehicle every few years with little hassle, then leasing may be worth the additional cost. Be sure, however, that you can live with all of the limitations on mileage, wear and tear, and the like.

It's difficult to make a fair head-to-head comparison between, say, a six-year loan and the standard three-year lease. At the point the lease ends, the bank borrower still has three years of payments to go, but the lessee has to look for another car-or perhaps take the lease's buyout offer.

A lease can also be subsidized, or "subvented." The automaker either takes money off the top with an extra rebate just for lease deals, or it can raise the residual, or both.

An automaker may also kick in extra rebates on a lease deal, ones not available to a loan customer. In addition, the "money factor" (interest rate) on a lease may be different from the interest rate offered on a loan, making an apples-to-apples comparison almost impossible.

In general, two back-to-back three-year leases will cost thousands more compared with buying a car (with a loan or with cash) and owning it over that same six-year period. And the savings increase for car buyers if they continue to hold on to the car, say, for another three years for nine years total, even factoring expected maintenance and repairs.

If a lease's limitations put you off, consider buying a less-expensive new car or a well-maintained used car, such as a certified pre-owned vehicle from a franchised dealer, or getting a longer loan term. Whether you get your new car with cash, a loan, or a lease, you can save by choosing one that holds its value well, stays reliable, and gets good fuel economy.

For savings up front and over the long haul, buy used. And pay cash.

Many people assume that the monthly payment printed in a leasing ad is etched in stone. But that figure may be based on the manufacturer's suggested retail price, which can be negotiated downward just as if you were buying the vehicle.

Be aware, though, that the best lease deals are available only to those with superb credit, and that they may only be cheap because the automaker is trying to clear the decks of slow-selling cars.

Below are some of the major differences between buying and leasing.

Jon Linkov

I owe my career to two fateful events: my father buying a 1965 Corvette and my purchase of an Audi A4 rather than a Chevy Tahoe. The Corvette jump-started my love of cars, and the Audi led me to automotive journalism, track days, and amateur car repair. In my free time I cycle as much as possible, no matter the season.

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Leasing vs. Buying a New Car - Consumer Reports

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More on Car Buying and Leasing On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you're not paying back any principal. Instead, you're just borrowing and repaying the difference between the car's value when new and the car's residual-its expected value when the lease ends-plus finance charges.

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When pondering the question to buy or lease, this article breaks down possibly confusing and conflicting points of view into 7 key questions, including tempting or outrageous interest rates, what to do with a tight budget, like the idea of trying a new car every few years, avoiding maintenance fees, and what to do at the term end.

The article uses a great example for a Honda Civic and what it means to have two different interest rates - Leasing at 1.99% for 60 months versus buying 0.99% for 5-year term. Both are actually 5 years; however, it shows how dealers will position the rates and payments to entice you.

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Debating whether you should lease instead of buy? Let's go over the pros and cons of leasing vs financing or buying in Canada

If you think leasing a car will save you money, you're making a huge mistake.

Yes, "only $300 per month!" for a long-term lease can sound enticing, especially when the monthly cost of purchasing the vehicle works out to nearly double that.

But there's much more than a monthly payment to consider when figuring out the real cost of acquiring a new car.

And although leasing conveys the impression a certain car may be more "accessible," it doesn't really reduce their cost at all - at the end of the lease term, those "low monthly payments" will have added up to tens of thousands of dollars spent on a vehicle you don't even own.

That said, there is sometimes a logic to leasing, and financing a portion of the sticker price of a car you'll use over the best years of its life. For some, it could be a wise solution.

But not for everybody. Here is when leasing makes sense.

1. Leasing a car: When the interest rate is particularly interesting

Interest rates vary widely, depending on the brand, model, model year and, of course, depending on the buying or leasing terms. However, leasing generally involves higher rates than purchasing. But sometimes - rarely - the lease rate might be similar, if not better, than the purchase rate. That's when things get interesting.

"When rates are similar, leasing and purchasing become two equivalent financing options," explains Éric Brassard, financial planner with Brassard Goulet Yargeau of Québec and author of Finance au Volant. "In fact, leasing is just another way of borrowing, the difference being you have a balance at maturity."

2. Leasing a car: When your budget is extremely tight

Leasing can also help if you're on a very limited budget, when lower monthly payments can mean the difference between getting a new car or not. Let's take for example Canada's best-selling car for the last two decades, the Honda Civic.

Last month, March 2020, the DX-trim Civic with manual transmission was offered with a higher lease rate (1.99 per cent for 60 months) than purchase rate (0.99 per cent, again for a five-year term). But if the $251 monthly lease payment is the most a consumer on a tight budget can afford - and the $388 per month to buy the car too much - leasing may not just be the better option, but the only one.

1. 10 Tips on how to buy your new car smarter

2. Here are the cheapest new cars you can buy in Canada

Need to save even more? If you don't expect to drive 20,000 kilometres annually, ask your dealership to lower the yearly allowance. That way, the residual value - or "buy-back" - will increase. That reduces the amount you have to finance, which should lower your monthly payment even more.

"You'll end up paying a smaller share for your use of the vehicle," points out CAA-Québec's automobile expert, Jesse Caron. "The money saved should go to paying off debt with higher interest rates, like a credit card."

3. Leasing a car: When the interest rates aren't outrageous

Let's look at a different example, the new Chevrolet Spark. At $9,998, it's the cheapest new car you can buy in 2020. But with rates of 5.49 per cent for buying - and 8.99 per cent(!) for leasing - the monthly payments work out to $249 and $222, respectively, for a five-year term.

Whether you buy or lease cars, in these transactions, the amount spent in interest will exceed $2,000 - more than 20 per cent of the subcompact's price tag. At this point, you would be better shopping for a used car.

(Ironically, you could buy a 2013 Chevrolet Spark for half the price, and even with an interest rate of 9 per cent, the car would cost you $190 monthly, and for only 36 months. Not only would you spend less than half the interest, but after three years, the Spark will be yours.)

4. Leasing a car: When you're planning on changing cars like shirts

Like changing your wheels every couple of years? Well, leasing certainly has some advantages over buying in this regard.

Note that when you do this, what hits you in the wallet is not so much the lease itself, but rather taking on new debt every time you trade your car in, while continuing to suffer the sting of depreciation. (A car's value drops most steeply in its first few years.)

Still, if you're willing to spend that kind of money on a new vehicle every two or three years, "studies show it often costs less to repeat-lease than to repeat-buy," says Brassard. Also of note: the self-employed can often more easily calculate lease deductions on their taxes. Ask your accountant what financing arrangement is most tax-efficient for you.

5. When you're not doing it to avoid maintenance fees

If you swap cars more often than most to save money on the maintenance associated with older vehicles, you're doing it wrong. "What you're saving in costs of repairs will never match a car's enormous depreciation costs in its early years," says Brassard.

"Rather than constantly swapping cars so they are always warranty-covered from the manufacturer, consider the cost of an extended warranty."

Speaking of maintenance: Exercise caution when leasing cars. Low monthly payments and gimmicks like "weekly payments" may tempt you into a bigger, better-equipped - and ultimately more expensive - car. A BMW at "only $150 per week" is nice and all, "except you have to keep in mind the more upscale the vehicle is, the more expensive its maintenance will be," says CAA-Québec's Caron. You'd think twice if that oil change is $150, too.

6. When the lease works as an insurance policy

If your new vehicle turns out to be a lemon, doesn't meet your expectations, or needs to be repaired after an accident, you'll be happy you opted for what's essentially a (long-term) rental.

There's more than a monthly payment to consider when figuring out the cost of a new car

An owner who bought the car outright would very likely incur a loss upon resale in any of the above scenarios.

But you, as a lessee, get to wash your hands of it when you return the keys to the dealer, and let them worry about selling it and haggling with buyers.

Leasing even technically lets you know ahead of time what a car will be worth at the end of your term.

That said, make sure to check the residual value the dealership's established for it. If the buy-back is too low, you'll be paying a higher share for its use. A good way to benchmark is surfing Canadian Black Book, the resale value reference for over 55 years.

7. If you don't want to keep it at term's end - or if you do

Long-term lessees will tell you, be careful to hand back your dealer a car with nothing more than normal wear and tear and an odometer reading that doesn't seriously exceed the kilometres allotted.

If the vehicle's mileage is significantly lower or higher than laid out in the contract, though, consider holding on to the car. In it's lower, you get to use up the miles you've already paid for. If it's higher, you avoid paying a penalty.

What if the vehicle's market value is less than what it'd cost to pay off in full? Don't jump to get rid of it, Brassard says, instead recommending you ask yourself whether the vehicle still suits your lifestyle, and whether it's reliable and you're satisfied with it. If it's a "yes," buying your leased vehicle helps you avoid getting hit by a new car's sharp depreciation again, and shirks off new, higher interest payments and insurance premiums.

Nadine Filion

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Should I lease or buy a car in Canada: How to make the right decision

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Debating whether you should lease instead of buy? Let's go over the pros and cons of leasing vs financing or buying in Canada

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This short 2.5-minute video quickly outlines the key components to consider when buying or leasing a vehicle. Some topics covered are driving habits, driving distances, interest rates, getting a new car every few years, maintenance headaches or not, and financial considerations.

The simple easy to follow scribe outlines answers for you quickly and effectively so that you can identify any key areas you need to do more research on. It starts by showing all the benefits of buying and leasing which quickly allows you to identify with which benefits you prefer (new every few years, different model (SUV, Sporty,) or getting a practical vehicle which will last you for many years. Definitely worth a quick view

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Buying a Car vs. Leasing a Car: Weigh Your Options | Toyota Financial Services | Toyota

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Accountant perspective on buying, financing, or leasing

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Accountant perspective on buying, financing, or leasing

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This video is 14.5 minutes long and while it is a bit longer than other videos, it provides more details on the differences between buying leasing, and financing and which could be the best option for you.

The video details the financial calculations for each of the options. It further breaks down various scenarios ranging from no down payments, changing interest rates, and different periods.

At the end, you can see how much each option costs you at the end of each term and which works best for you. The interest rate calculations for each option allows you to see how much you are spending and what you could do with the money in investments.

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ACCOUNTANT EXPLAINS Should You Buy, Finance or Lease a New Car

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Buying a car in 2024?? This video outlines how to avoid becoming car poor and the definition of being car poor? This also includes how to be prepared before you walk into the dealership.

The video starts by explaining the 35% rule, 10-20 rule, and the 24-10 rule. Each rule is explained in detail using applicable examples. The video then goes into a step by step tutorial on calculating each of these and how you can apply them to finding out your effective monthly payment for both lease or buy. At the end, you will be able to avoid being car poor and be a smarter consumer entering the dealership for your new car!

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ACCOUNTANT EXPLAINS How Much Car Can You Afford | Avoid becoming CAR POOR

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This website outlines the difference between leasing and buying, however, it also contains additional information regarding potential options for leasing, such as taking over a lease, penalties of getting out of lease, leasing a used car, getting a 1-year lease, and a great resource called '8 steps to get a lease'.

This 8 step process is easy to use and all you need is a budget (idea of how much you can afford or want to pay), your credit score, and your mobile phone. It further outlines key items such as insurance fees, maintenance fees, creating a budget, finding a good dealer, booking a test drive, and other key items to consider before you walk into the dealership.

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How To Lease a Car: Car Leasing in Canada Explained

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Everything you wanted to know about leasing a car in Canada—simplified! Find out if it’s the best option for you & how to get the best deal…

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This article explains what is leasing, how financing can help build your credit, how market trends could impact your decision to lease or buy, how many Canadians bought their cars outright in 2021, and many other pros and cons of leasing.

There is also a link to a video provided by CTV news about leasing an electric vehicle pros and cons, what to check for, and considerations. At the bottom of the article there are also additional link for another article on should I buy a new car or lease a new car or wait until interest rates come down. Another great article to read if you are still wondering how lower interest rates can impact your decision.

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An Ottawa woman said when she suspected someone was trying to gain access to her BMO account, she went to the branch to inform the bank. She was told everything was fine but, by the time she got home, $15,000 had been stolen.

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The pros and cons of buying or leasing a vehicle

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About one-third of Canadians purchased their vehicle outright in 2021, according to a report from Insurance Insight. The other two-thirds of car buyers financed or leased their vehicles.

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This graphic highlight the key differences between leasing and buying (financing). The main topics are listed in three for each.  The simple explanation is easy to understand and really points out the top points to consider.

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Key differences between Leasing versus Buying

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Key differences between Leasing versus Buying

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Another quick reference to quickly identify the difference between leasing and buying. This graphic also refers to equity and which option builds your equity and which option has potentially more fees.

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Which is better??  Questions to ask yourself 

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Which is better??  Questions to ask yourself 

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This 8.5 minute video outlines the many differences and how your personal driving habits, personal goals, preferences, and financial situation may impact your decision. As a consultant, Shari Prymak provides candid answers to many of the questions he has been asked on this topic. His views on both show which may be better for you as the consumer.

He starts by asking are you a long term person or a short term person. This simple question helps outline which option may be better and how this can impact your equity. He continues to explain the pros and cons on owning a car for a long period of time and buying is better in this case versus leasing for very short periods.

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Leasing VS. Financing A Car | Is It Better To Buy Or Lease A New Car?

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Calculator to determine costs in Leasing versus Buying 

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Calculator to determine costs in Leasing versus Buying 

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A detailed calculator allowing you to define specific details on leasing versus buying your next car. This calculator also shows the depreciation value of your car to provide more information on which scenario is better for you.

Similar to the other calculator in this wall, you can also adjust interest rates (if the car company has special deals for certain models).

This additional calculator allows you to play around with other scenarios which you may be curious to see which works better for you. You can also see if you lease a vehicle for a short term (say 2 years) and then decide to buy it at the end of the lease, how much the monthly payments will be and if this is another consideration.

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Use this lease vs. buy calculator to figure the best deal on your next car. Simply compare your...show more instructions

Should You Lease Or Buy A Car?

Which is best, to lease or buy a car?

The correct answer for your situation can't be generalized because it depends on your individual needs and circumstances.

There are several advantages and disadvantages to both leasing and buying. It is important that you carefully assess your needs and your financial situation before making a decision.

Related: 5 Financial Planning Mistakes That Cost You Big-Time (and what to do instead!) Explained in 5 Free Video Lessons

Compare the costs of leasing vs. buying using this Lease vs. Buy Car Calculator and see which strategy works best for your situation. The calculator will reveal all the expenses associated with each option, including your total costs and an average cost per year.

Assess Your Needs

When making a decision to buy or lease a car, start by evaluating your needs. Review your budget and calculate how much you can afford to pay every month (try out the Budget Calculator). The following questions will guide you in evaluating your situation:

Do you have enough money to make the down payment?

Is the car you want to drive too expensive for your budget?

Are you looking for a car with a very low monthly payment?

How often do you replace your car?

What are your driving habits?

Do you intend to use your car for long distance trips?

Do you worry about the resale value of your car?

Do you trust the company where you will be leasing the car?

Once you've answered these questions, take a look at the pros and cons of leasing and buying a car.

Pros Of Leasing

Leasing is simply a way to rent a car. The problem is many consumers lease vehicles they otherwise could not afford to buy. Let's take a look at some of the pros of leasing a car:

Leasing a car gives you the luxury of driving a new and different car model every few years when your lease term ends.

You don't need to worry about major car repairs since the leased vehicle will remain under warranty by the leasing company.

In some instances, the monthly car leasing payment is cheaper than the monthly loan payments for buying a new car.

The sales tax you pay for leasing will be low compared to buying a new car.

Cons Of Leasing

Leasing isn't all good news though. Here are some of the downsides:

In some markets, leasing is more expensive and the initial payments are high. In this case, you need to shop around to get the best deal.

The cost to pre-terminate the lease can be very expensive. Before you lease a car, make sure you can afford the payments over the term of the arrangement.

There are mileage restrictions in car leasing. Therefore, if you regularly drive long distances that exceed the mileage limit then you will end up paying more for your lease.

You cannot modify or change the car to suit your personal needs since you don't actually own it.

Pros And Cons Of Buying A Car

If you can afford to buy a car outright, it's usually a good idea. The Lease vs. Buy Car Calculator will help you make the best decision for your individual circumstances.

Financing a car may require a large down payment - including the debt to go along with it. Because many consumers use a 60-month loan term you have the advantage of owning your car without payments after 5 years.

Related: How to be a pro at growing your wealth

Your driving habits are another factor - if you drive more than 12,000 to 15,000 miles per year it may be best to buy a car because the higher mileage will increase the cost of a lease.

One major disadvantage of buying a car is you'll have to shoulder the cost of major repairs when they are needed. Another disadvantage is depreciation - the decreasing value of your car over time.

If you don't mind owning a vehicle for a long period of time, buying is advantageous - much like owning a home. If you prefer driving new cars with low mileage every year then leasing can be advantageous.

Final Thoughts

The best decision for you will depend on your financial status, driving habits, and reasons for needing a vehicle.

The first step before making a decision to buy or lease a vehicle is to evaluate your needs and long-term plans. It really boils down to your personal preferences relative to what the lease vs. buy car calculator shows as the comparable costs. There is no single right answer that fits everyone's situation.

Remember that car dealerships like to lease cars for a reason: there are financial benefits and typically the customer-loyalty rate is higher. What is good for the dealership is probably not good for you since you are on the opposite side of the transaction.

Calculate which option is best for you using the Lease vs. Buy Car Calculator, and appropriately weigh the risks and rewards of each option.

Lease Vs. Buy Car Calculator Terms & Definitions

Lease - An agreement whereby the party grants the use of property (in this case, a car) or services to another for a specific period time.

Purchase Price - The total amount you pay for goods (in this case, a car) or services.

Sales Tax Rate - A tax imposed by the government at the point of sale (in this case, of a vehicle).

Cash Down Payment - A portion of the amount borrowed or an initial amount charged in a lease.

Security Deposit - The amount held by the lessor to cover damages caused by the lessee for the rented property.

Rebates - A portion of the money returned to the buyer due to promotions.

Depreciation Expense - The reduced value of an asset over time due to aging.

Resale Value - The market value of the property.

Forgone Interest Earning - The interest lost if a certain amount of money is invested.

Interest Expense - The total amount you paid for interest.

Trade-in Allowance - The amount the dealer agrees to pay for a used, trade-in vehicle, which consumers often apply toward the purchase of a new vehicle.

Fees - A payment made to a professional person or public body in exchange for advice or services (in this case, leasing or buying related fees).

Interest Rate - The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan.

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This lease vs. buy car calculator will figure out whether leasing or buying is the best deal for your next car. Compare payments with this simple to use calculator.

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Tax benefits for self-employed or business owner 

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Tax benefits for self-employed or business owner 

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Additional information outlining the benefits of leasing vs financing regarding tax-savings.

While this may not apply to everyone, there is some good information on the potential tax savings if you meet the criteria. This article outlines how you may fit in this category and what you can do to get the most for tax savings.

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Leasing Vs  Buying a Car for Maximum Tax Claim in Canada

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A key surprise for me was the large number of sources explaining the differences between buying and leasing. These sources ranged anywhere from videos and articles to online calculators, many of which were not manufacture specific. There are so many resources available to anyone so that they can be very prepared walking into a dealership and avoid being blind-sided.

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Currently, I am looking at Electric Vehicles and if buying or leasing makes more financial sense. I found many of the articles assisted me with identifying my driving habits and patterns, considerations regarding having a new car every few years versus holding onto it for many years, and maintenance. This assignment has provided me with the necessary tools, calculators, and personal analysis to identify that leasing an EV to 'test it out' works best for me.

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One of the key points I would pass on is have a very frank discussion with yourself to identify your driving habits, patterns, credit, budget, and work with that calculation to find what works best for you. If you really like having a new car every few years and want a more expensive one, leasing may be best - however, you will never 'own the car'. One thing you may want to consider is lease first, then buy it out at the end. This is a great way to try it out.