Should I Buy or Lease My Next Vehicle?

Not sure if Leasing or Buying a vehicle is right for you? Most people are more familiar with the car buying process vs. the leasing process. Leasing generally appeals to people who use cars for business, need a car for a limited period of time or trade in their cars at regular intervals. Below find an easy to read chart that helps to explain the differences.  We've also provided a
payment calculator to the right to help you figure out monthly payments for either leasing or buying your next car.

Buying a Car

  • Monthly payments are applied to purchase of vehicle
  • Monthly payments include financing charges
  • Down payment usually is required
  • When the car loan is paid, you own the car
  • You can modify your car any way you want such as painting, accessories, etc.
  • No mileage restrictions; however, higher mileage reduces the trade-in value of the car
  • Car loans usually extend past the warranty period, so you'll be responsible for repairs
  • Although you have maintenance and upkeep requirements, performing routine tasks is a good idea
Leasing a Car

  • Monthly payments are applied to depreciation, not the purchase price of the vehicle
  • Monthly lease payments are significantly lower than car loan payments
  • A down payment often isn't required
  • After the lease period is over, you need to lease another vehicle
  • Exiting the lease early may require a payment of any remaining balance - Early termination penalties vary
  • You must predetermine how many miles you drive per year
  • Your vehicle usually is covered by the manufacturer's warranty for the duration of your lease
  • You have to pay for any excess wear and tear and any mileage that goes over the pre-determined amount identified