The major difference between buying and leasing is the ownership of the vehicle. When you buy, you are the owner of the vehicle and your name is listed on the title. When you lease, the leasing company is the owner of the vehicle and their name is listed on the title.
How do you know which is best for you? Print this page, circle appealing benefits, and than tally the totals from each column below. Whichever column (Buying/Financing or Leasing) has more circles is the option worth seriously considering. |
| Buying / Financing | Leasing |
- Satisfaction of owning your own vehicle
| - A chance to drive a new vehicle more often because lease terms are often shorter than finance terms
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- Plan on keeping your vehicle for a long time
| |
- You put a lot of wear and tear on your vehicle (for example, vehicle is used for your job)
| - Gap Protection (often included in the lease agreement, covers the difference between your insurance company's settlement and the replacement value of the vehicle)
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- No restraints on mileage if you drive excess miles
| - No resale or trade in hassles
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- The vehicle is yours to sell or trade in at any time for another vehicle
| - Potential lower monthly payment or ability to afford a more expensive vehicle than if you finance for the same term
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| When you read your finance or leasing contract, be sure to ask about any terms you don't understand or amounts that seem confusing. Mistakes do happen on occasion, but they're easiest to correct before you sign the paperwork. |
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