You do not own the vehicle. You get to use it but must return it at the end of the lease unless you choose to buy it.
You own the vehicle and get to keep it at the end of the financing term.
Up-front costs may include the first month’s payment, a refundable security deposit, a capitalized cost reduction, taxes, registration and other fees, and other charges.
Up-front costs include the cash price or a down payment, taxes, registration and other fees, and other charges.
Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle’s depreciation, plus rent charges, taxes, and fees.
Monthly loan payments are usually higher than monthly lease payments because you are paying for the entire purchase price of the vehicle.
You are responsible for any early termination charges if you end the lease early.
You are responsible for any pay-off amount if you end the loan early.
You may return the vehicle at lease-end, pay any end-of-lease costs, and “walk away.”
You may have to sell or trade the vehicle when you decide you want a different vehicle.
The lessor has the risk of the future market value of the vehicle.
You have the risk of the vehicle’s market value when you trade or sell it.
