As the names suggest, a leasing or contract purchase is a legally binding contract that provides you with a particular car for a particular length of time, where you agree not to exceed a particular mileage yearly.

You may or may not choose to include maintenance in the contract. In exchange, you agree to pay the monthly rental and other costs associated with the contract each month.

If you decide you don’t like the color or that a different model would be better for you several months into the contract and choose to end it, you could face significant penalty charges for breaking it.