Leasing vs Buy

A lease is a contract made between a lessor (the legal owner of the asset) and a lessee (the person who wants to use the asset) for the use of an asset, bound by rules intended to protect both parties.

Pros and cons of a car lease

Before leasing a vehicle, it’s important to first understand the potential advantages and disadvantages involved. These may include:

Pros of a car lease

  • No large upfront payment
  • Opportunity to drive latest models.
  • Consolidated repayments
  • Tax benefits for novated leases

Cons of a car lease

  • You don’t own the car and can’t modify it.
  • Mileage restrictions
  • Administration fees and other charges may apply.
  • Large residual value at end of lease
  • Reduce Borrowing capacity for Loans.