| Buying | |
| Who Owns it | You own it. The vehicle is 'yours' whether you pay for it with cash, make monthly payments and/or finance it.If your financing other rules apply and you'll have to meet the obligations that were agreed upon between you and the lender. For instance,
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| Up-front Costs | As mentioned above, if financing you'll need to decide on a down payment. You can trade-in a second vehicle and use the equity towards the down payment. - The amount of the down payment is based on 2 things:
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| Future Value | What you will be able to sell your car for in the future depends on how well you maintain it.This means be smart and regularly schedule maintenance appointments! |
| End of Payments | As soon as you have paid off what you owe on the contract, your vehicle is officially 'yours.' After this you will receive a Green Slip as proof that the vehicle is paid off and in your name now. |
| Leasing | |
| Who Owns it | When leasing you DO NOT own the car. The finance institution that you leased it through owns it, but you are paying for the use of the vehicle. This is why you end up paying less per month in a lease than if you were to buy. |
| Up-front Costs | There is no down payment in a lease. All you would have to pay is: 1. First Month's Payment 2. Security Deposit 3. Acquisition Fee & other Fees/ Taxes |
| Future Value | Because you do not own the vehicle you will not end up selling the vehicle. |
End of Payments | The vehicle will be returned at the end of the lease term, although some people: 1. Purchase during or at end of lease 2. Trade it in before lease is over Just remember to ask about the different options before signing the paperwork and the lease can be set up any way you'd like. |
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