Over the years, businesses have seen these fees risen, especially smaller businesses who often pay much more than larger companies to accept credit cards making it more difficult for them to compete with large companies. After consultation with several major credit card companies, on October 6, 2022, the Canadian Federation of Independent Business (CFIB) announced that businesses are now allowed to charge a processing fee for payments by credit card.
You should take following factors into account.
- How many miles are you expecting to travel? If you expect to have a lot of mileage then most leasing companies, charge additional fees over certain mileage. This information should be specified in leasing contract. You have to determine how much extra you have to pay over specified mileage. Then it might not be to your advantage to lease a car.
- How often do you change a vehicle? Are you the type of person who changes a vehicle after two to three years or do you like to keep the same vehicle for five to ten years. It is better to lease if only keeping the vehicle for a short period of time.
- Cash flow? Do you have enough cash to purchase a vehicle. If not, it may be better for you to lease. Since leasing a vehicle is easier for a person with bad credit rating.
- Legal Issues: Do you have any court order against you, i.e. owe money to other people or in the course of divorce settlement. If so, then any of your assets may be seized or distributed. Then it might be better for you to lease a vehicle.
- Tax Point: From a tax point of view, the difference between buying and leasing is minimal.
You have to look at other factors to determine what is the best decision for you.