SOME TIPS FOR YOU / LEASING vs BUYING
 
OWNERSHIP OF THE VEHICLE
LEASING: You do not own the vehicle. You get to use it but must return it at the end of the lease unless you choose to buy it. Know the value at the end of the lease. This will be a factor if you want to buy the vehicle at the end of the lease.

BUYING: You own the vehicle and get to keep it at the end of the financing term. If you are planning on keeping the vehicle after the pay-off, click on the free guide.

 
THE UP-FRONT COSTS
LEASING: Up-front costs may include the first month's payment, a refundable security deposit, a capitalized cost reduction (like a down payment), taxes, registration and other fees, and other charges. BUYING: Up-front costs include the cash price, less the trade-in or a down payment, plus taxes, registration and other fees, and other charges.
YOUR MONTHLY PAYMENTS
LEASING: Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle's depreciation during the lease term, plus rent charges (like interest), taxes, and delivery related fees. BUYING: Monthly loan payments are usually higher than monthly lease payments because you are paying for the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and delivery related fees.
THE TERMINATION OR PAY-OFF AMOUNT
LEASING: You are responsible for any early termination charges if you end the lease early. Do your homework here. We have seen some really unreasonable lease programs. BUYING: You are responsible for any pay-off amount if you end the loan early. It really pays to map out a schedule of the projected value to help you decide on the right vehicle.
RETURNING THE VEHICLE
LEASING: You may return the vehicle at lease end, pay any end-of-lease costs, and "walk away." More details? The free guide. There is more information for you on this. BUYING: You may have to sell or trade the vehicle when you decide you want a different vehicle. Read our free guide for details on this.
THE FUTURE VALUE OF THE VEHICLE
LEASING: The lessor has the risk of the future market value of the vehicle. A very good advantage for you if the vehicle depreciates. Know the projected value at the end of the lease. BUYING: You have the risk of the vehicle's market value when you trade or sell it. Measure this factor prior to sale by valuation. Note the trend for depreciation of the vehicle. Click on pre-owned value for more information.
THE MILEAGE IS A MAIN FACTOR
LEASING: Most leases limit the number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will most likely have to pay charges for exceeding those limits if you return the vehicle. BUYING: You may drive as many miles as you want, but higher mileage will lower the vehicle's trade-in or resale value. See Blue Book values and mileage schedule for details.