Buy a car

Lease a car(1 year above)

Upfront Cost
(Deposit/Down payment)

No choice after purchase

Various choices after leasing agreement ends

Variety

Down payment: 10% of the vehicle price

Deposit of 2 months, fully refundable (less than 10% of vehicle price)

Payment of license, insurance, maintenance

Borne by owner

Borne by Leasing Company

Transfer fee

HK$ 1000

Non-transferrable

Accident/ Damage Responsibility

Owner itself

Hirer bears insurance deductible only

Penalty for early termination

Subject to Finance Company, early settlement penalty may imposed

Subject to Leasing Agreement

Depreciation

4 or 5 years

N/A

Risk of depreciation

Risk of
depreciation

Borne by Leasing Company

Balance Sheet Category

Balance Sheet
Category

Expense