The word Leasing and Financing have different meanings in the United States and in Pakistan.
In the United States, when you lease a car, you pay certain $$$ per month. At the end of the lease period, you do NOT own the car. Its not yours. You have to turn it in and give it back to the bank.
When you finance you car in the United States, you pay certain $$$ per month. At the end of the term, you keep the car. You are the owner. The bank has nothing to do with it anymore.
Why lease then? Because the leasing per month payment is less than that of the financing. People who cannot afford the financing opt for leasing.
Unfortunately, in Pakistan, the word leasing has totally different meaning than that in the United States!!!!!
In America, you will quite often hear the term "Lease Agreement" between your landlord and yourself for your an apartment(flat). In Pakistan, leasing means that you do OWN the entity in question at the end of the term. Clearly, you do not own your apartment at the end of the term. So in Pakistan, you call it a "Rental Agreement" between the landlord and yourself for some property in question.
In Pakistan, they usually call it a "Bank Lease Vehicle". Since the meaning of Lease in Pakistan is owning, this means at the end of the term, you will own the car and do not have to turn it in. Therefore, Leasing and Financing means the same thing in Pakistan.
In Pakistan, there is no equivalent of a "Leased vehicle" in the United States.
Bottom Line:
Pakistan---leasing is the same as financing. You own the car.
United States---You can either lease or finance the car. You will have to turn it in if you lease at the end of the term. You can keep your car in the financing option, but you will have to pay a lot more per month!
