Ownership
BuyingWhen you own your vehicle you get to keep it as long as you want it.
LeasingYou have the vehicle for a finite period of time, and usually have a limited number of miles.
Up-Front Costs
BuyingIf financing you will typically have to pay a down payment or include equity from a trade-in.
LeasingYou may pay a down payment of zero to several thousand dollars, and can include other fees.
Monthly Payments
BuyingMonthly payments are usually higher because you are slowly obtaining the vehicle's equity.
LeasingMonthly lease payments are almost always lower, because you are mostly
paying for the vehicle's depreciation of the time you use it.
Early Termination
BuyingKeeping in mind what is owed and what the vehicle is worth, you can sell/trade at any time.
LeasingTermination fees will apply if ending a lease early, which can cost up to as much as the remaining balance of the lease.
Vehicle Return
BuyingDepending on if there is a balance owed, you can sell or trade your vehicle when ready to move on.
LeasingWhen the lease is over you get to start fresh with another vehicle - as long as you haven't exceeded the miles limit or damaged the vehicle beyond normal wear.
Mileage
BuyingThere are no mileage limitations, however you should factor the higher the miles, the less value it will maintain.
LeasingMost leases have mileage limitations. Going over your limit will result in additional fees.
Excessive Wear
BuyingYou are free to do as you wish, however excessive wear will decrease value if you want to trade or sell it.
LeasingYou may be charged fees if your vehicle suffers more than normal wear and tear. Make sure you understand what is considered normal wear and tear according to your particular lease.
AdChoices