The initial depreciation what you guys are calculating (considering) has already been paid for by you to the leasing company and you cannot recover that. Now when you pay the balance amount it is for a depreciated car.

For comparison purposes, check out the current high/low/median prices of your exact same make+model+mileage on autotrader.ca and check if the buy out amount is justified.

A newer car comes with newer technology and better peace of mind. All maintenance issues will start after the first 5 years.

Good luck with your decision.

Hiren

I appreciate sharing your views. Buying out a leased vehicle or not is a different topic, I did a bit of my home work, the similar RAV4 model is priced 8-10K more than my buyout value on autotrader (RAV4 seems to hold good resale value).
Depreciation is the common factor, which every new vehicle carries, given the condition of my RAV4, I consider it still "new" (even after 4 years) I don't see any significance changes in technology in new models, which I/ my family need. When I decided to buy it out I am ready to take that calculated risk of future maintenance, I will be setting aside some monthly amount for any anticipated repair(s).
I owned a 1995 Honda Civic for 6 years, when sold it had 350K on it (yes I sold it in perfect running conditions) never had any issues other than the usual maintenance. I know it does not mean that I should not expect any problem with RAV4 in future but as said earlier I am willing to take my calculated risk. Unless dealership offers really attractive deals (comparable to the US) I am not willing to through my money on another new vehicle, therefore decided to buy it out.