If it is a typical lease/purchase such as Volvo finance, then purchase is
usually the best deal. However, on occasion sellers will sell to the leasing
company for less than they will sell on the market. Also, sometimes the
leasing company will use a below market interest rate to make themselves
more competitive. You need to be careful though, in some jurisdictions both
the lessor AND the lessee end up paying personal property tax, this can be a
killer. You need to pay close attention to the residual value being used. In
some leases, you are responsible for any shortfall on residual. Usually the
best way to lease for personal use is to use a 36 month lease with a
guaranteed residual value. At the end of the lease you can exercise the
purchase option and buy the car. This can work out pretty well if the deal
is good to start with. I have leased cars for much less than I could
purchase them, when the situation was in my favor. Work the deal both ways
and take your best shot. Since it's for personal use, not business, the tax
implication are negligible except for the personal property tax issue.