| Money due at signing |
Buying is more expensive in the short term. When you buy a car, you'll usually pay for at least a down payment, taxes, registration and other fees. |
Leasing is the cheaper short term option. Usually you will be expected to pay for the first month's payment, a refundable security deposit, taxes, registration and other fees. |
| Personalization |
Your vehicle is yours. You can modify or customize as you like, whether with bumper stickers, aftermarket parts, or anything you like. |
The lessor will want the car returned in as close to new condition as possible, so you will need to remove any personalization before the end of your lease. |
| Monthly payments |
Loan payments will be higher than lease payments, since you're paying off the entire price of the vehicle. |
Lease payments will usually be lower than loan payments, because the bulk of what you are paying for is the depreciation of the vehicle. |
| When it's time to upgrade |
In order to upgrade, you will either need to sell your car or trade it in, subject to the dealers valuation. |
You can return the vehicle at end of your lease and upgrade to whatever model catches your eye. |
| End of term |
At the end of the loan term, you will own your vehicle, and can choose to enjoy life debt-free, or leverage your equity into a new loan. |
At the end of your lease, you'll usually have the option to pay for your vehicle outright. Otherwise, you will need to lease a new vehicle. |
| Long-term value |
Everything depreciates over time, but you own the cash value of your car. |
Depreciation doesn't hurt you, but you don't have any equity to leverage at the end of the day. |
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