Example 1

The original lease on a $ 30,000 vehicle with a 48 month term, 8% interest and a $ 12,000 residual has a monthly payment of $ 515 plus taxes (assume 8% PST and 7% GST) for a total monthly payment of $ 592.25.

There are 8 months left on this lease.

A similar used vehicle is retailing for $ 16,000 plus taxes today for a total cost of $ 18,400.

• Option 1: Take over the lease and pay $ 592.25 per month for 8 months.
• Option 2: Buy the similar vehicle for $ 18,400 taxes included. If this vehicle is financed over 3 years at 9%, the monthly payment will be $ 580.