What is Leasing?Apr 9th, 2019
Vehicle leasing is using a motor vehicle for a fixed period of time for an agreed amount of money. Leasing is an alternative to financing a vehicle or paying with cash. Instead of paying down your loan to zero, you set a residual value for the vehicle. That number reflects the future value based on kilometers.
For example: Say you sign a lease that allows 30,000 km per year. The dealership then sets the residual value for this mileage. When your lease is over you can either buy it out, return the vehicle and trade it in for a newer model or extend the lease until you can afford to buy it out.