Leasing vs. Buying

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.

Buying


You own the vehicle and get to keep it at the end of the financing term.

Leasing


Up-front costs may include the first month's payment, a refundable security deposit, a capitalized cost reduction, taxes, registration and other fees, and other charges.

Buying


Up-front costs include the cash price or a down payment, taxes, registration and other fees, and other charges.

Leasing


Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle's depreciation, plus rent charges, taxes, and fees.

Buying


Monthly loan payments are usually higher than monthly lease payments because you are paying for the entire purchase price of the vehicle.

Leasing


You are responsible for any early termination charges if you end the lease early.

Buying


You are responsible for any pay-off amount if you end the loan early.

Leasing


You may return the vehicle at lease-end, pay any end-of-lease costs, and "walk away."

Buying


You may have to sell or trade the vehicle when you decide you want a different vehicle.

Leasing


The lessor has the risk of the future market value of the vehicle.

Buying


You have the risk of the vehicle's market value when you trade or sell it.

Leasing


Most leases limit the number of miles you may drive. You can negotiate a higher mileage limit and pay a higher monthly payment. You will 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.

Leasing


Most leases limit wear to the vehicle during the lease term. You will likely have to pay extra charges for exceeding those limits if you return the vehicle.

Buying


There are no limits or charges for excessive wear to the vehicle, but excessive wear will lower the vehicle's trade-in or resale value.

Leasing


At the end of the lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another vehicle.

Buying


At the end of the loan term (typically 4-6 years), you have no further loan payments.

For more information, give us a call at: 1 (877) 606-4187

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