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 a car 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.