Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.

Thank you for the reply. Jeepman2

Hi Jeepman,

It depends on a few different variables. If you look at the financial aspect only then leasing is never a better option.

Here is a great consumer reports article that looks at the pros and cons of leasing vs. buying.

http://www.consumerreports.org/cro/cars/car-buying-advice/guide-to-new-car-buying/financing/pros-and-cons-of-leasing-2-07/0702_pros-and-cons-of-leasing_ov.htm

I would personally not lease a car. I would rather pay the car off asap and then use the money that went towards car payments to pay off my house faster or to invest.

Good luck with your decision :-)

Hi Everyone

If you are not aware and have not been auto shopping, Chrysler Jeep do not lease any longer. I have spoken to Toyota and they have a very solid "plain english lease plan' showing present value, customer rebates all upfront cost etc.... hard not to consider and the Rav4 is built 20 minutes from here. Very dificult decision when my community is a large CAW area.

Check Jeep.ca, Toyota.ca Ford.ca if you have not been in the car market like me for 4 1/2 yrs.

If anyone has comment regarding Leasing vs Buying please advise? maybe new Jeepman2