Leasing vs Buying
Leasing: Who Owns It
You do not own the car when you lease. Instead, you're paying for the use of the vehicle, and the finance institution that you leased it through actually owns it. This is why you pay less per month in a lease than if you were to buy the car.
Buying: Who Owns It
Whether you pay for the car with cash, or finance it and make monthly payments, it's still yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess the vehicle.
Leasing: Up-Front Costs
Leases often do not require any type of down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and other fees and taxes. Yet, as with any purchase, if you want to lower your monthly payments you can always pay more upfront.
Buying: Up-Front Costs
If you're financing it, the bank will probably request a down payment. If you have a vehicle to trade-in, you can use that equity towards your down payment. Your down payment amount is usually based on the lender's requirements and your credit score.
Leasing: Future Value
In most leases you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn vehicle back in.
Buying: Future Value
Your vehicle will be worth whatever you can sell it for in the future. Its value will depend on how well you maintain it. Be smart and protect your investment with regular scheduled maintenance at a factory-authorized facility.