What is the difference between leasing and buying a car?

How Leasing Works: When you buy a car, you are responsible for the entire purchase price. You either have to pay it in cash, apply the value of your trade-in, or finance the whole cost and pay interest on the loan. read more

Deciding between buying and leasing is based off of your own circumstances. Everyone is different and different people require different payment methods. After you carefully examine your own situation, you will be able to make the best decision on purchasing your new car. read more

That being said, buying tends to be cheaper than leasing in the long run. Once you've paid off your loan, you still have a car that's worth money — albeit less than you paid for it — even though the initial down payment and monthly payments will cost you more. read more

In the following sections, we’ll take a deep dive into the pros and cons of buying a car compared to leasing a car. Automakers frequently offer money-saving deals on both buying and leasing, and you can explore them on our lease deals page and purchase incentives page. read more

The primary difference between leasing and financing is in the ownership of the car. While you are financing a car, the lender holds a lien against your car. At the end of your payment term, you own the car free and clear. Every finance payment you make builds equity in the car and takes you one step closer to outright ownership of a paid-off asset. read more