| Buying | VS | Leasing |
Usually required to pay 10-20% down when taking out a car loan | DOWN PAYMENT | Typically a lower down payment and less up-front costs than buying |
Loan payments typically higher than lease payments, paying for the entire vehicle plus interest and other charges | MONTHLY PAYMENTS | Lease payments usually lower than loan payments, only paying the difference between capitalized cost and residual value |
Complete ownership, free to make modifications and keep as long as desired | OWNERSHIP | Do not own vehicle, cannot make changes, must return or purchase at the end of lease term |
Affects driver in terms of resale value | FUTURE VALUE | Does not affect driver |
AdChoices