Leasing presents the following disadvantages:
- Commitment to contract for entire validity period
- Higher fixed costs per month
- More expensive than purchase
Leasing provides the following advantages:
- The holder only pays for use
- Better liquidity, since holder does not need to put up a large amount of money for purchase
- Fixed rate, so precise monthly costs can be calculated
- Minimal sales risk, since the holder is not responsible for the vehicle's disposal at the end of contract validity
