There may also be a tax advantage to leasing. For example, if you're self-employed and you buy a car for business purposes, you can write off interest on a car loan, up to $300.00 a month. You can also deduct depreciation on the car under the capital cost allowance provisions, but only to a maximum vehicle value of $26,500.00 (before GST and PST).

When you lease, the maximum eligible lease cost write-off is $650.00 a month before GST and PST.

You avoid up-front charges for sales taxes when you lease. Each monthly lease payment is taxed, rather than the lump sum of the entire value of the vehicle when you purchase.

Peace of mind is another consideration. With two, three and four year leases now available, many new vehicles are covered under the manufacturers warranty for the entire lease term. That means fewer unpredictable expenses.

Leasing also won't tie up collateral, an important factor if you plan to take out secured loans for other purposes. The lease is secured by the value of the car