Differences Of Leasing & Buying A Car
See the main differences of leasing & buying a car.
We show you the positives & negatives of both leasing & buying a car. People have a preference of whether or not they want to lease or buy a automobile. See which one is a better choice for you based off your circumstances.
Chart With Differences of Leasing & Buying a Car
Use this chart to compare & contrast the differences of leasing & buying a car.
|Ownership||The car becomes yours for you to do as you wish with it.||You return the car at the end of the lease unless you decide to buy it.|
|Up-front costs||They include the cash price or a down payment, taxes, registration and other fees.||They typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.|
|Monthly payments||Payments for buying a car are usually higher than lease payments because you're paying off the entire purchase price of the vehicle.||Lease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term.|
|Early termination||You can sell or trade in your car at any time. If necessary, money from the sale can be used to pay off any loan balance.||If you end the lease early, early-termination charges can be almost as expensive as sticking with the contract.|
|Vehicle return||You'll have to deal with selling or trading in your car when you decide you want a different one.||You can return the car at the end of the lease, pay any end-of-lease costs, and walk away.|
|Future value||The car will depreciate but its cash value is yours to use as you like.||On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the car.|
|Mileage||Your allowed to drive as many miles as you want without an additional fee. (No milage limit. Although mileage amount will effect the car's total price value).||There is usually a limited amount of miles allowed in the lease. Mileage limits are usually ften 8,000 to 12,000 per year. Additional costs per mile if mileage limit becomes exceeded.|
|Excessive wear and tear||You don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.||Additional fees will be given if the lease your returning has more ware & tare than whatever is agreed upon the lease.|
|End of term||Upon completing payment for the car (typically four to five years), you have no further payments and you have built equity to help pay for your next car.||At the end of the lease (typically two to four years), you'll have to finance the purchase of the car or lease or buy another.|
|Customizing||You can modify or customize the car in any way you want. Although warranty will have it's own regulations.||The car must be returned in "re-sell able condition," therefore modifications or custom parts you add will need to be removed before you return the car. If there is any damage to the car, you will have additional fee's to pay.|
Happy Car Hunting!
Happy car hunting & good luck! We hope what we showed you about the differences of leasing & buying a car helped you make your choice of whether or not you want to buy or lease.
Whatever you do, make sure to look for the best deal possible! If you decided to go with leasing a car, it's a good choice for anyone! Contact us now for the best rates on car leases in California & all other states in the USA.