Leasing vs. Owning: Which one has a higher monthly payment? a lease is based on only a percentage of the car’s price. – you only pay the difference between the car’s price and what it’s expected to be worth at the end of the lease, which is a car’s residual value. – Example: if the car’s residual value is 55 percent after three years, for example, that means the $30,000 car would be worth $16,500 at the end of the lease. You’d make lease payments on the remaining $13,500 and not the full $30,000. a car loan is based on the full price of a new car – For example, on a $30,000 car, you’d finance the entire $30,000 purchase price with a car loan.

Leasing vs. Owning: How much of a down payment is required? Many car leases require anywhere from $0 to several thousand dollars up front, though the down payment is negotiable. A lower down payment = higher monthly payments (and vice versa) 10-20% down payment up front Leasing Owning

Leasing vs. Owning: Misc Most leases last about 3 years You are usually allowed to travel 9,000-15,000 miles during the length of your contract – If you exceed this mileage limit, a typical charge is cents per mile Repairs are covered during the lease period, but you are responsible for oil changes, tire rotations, other maintenance, etc. – Failure to keep up with maintenance may result in fees at the end of the lease You will have the latest trends & technology gadgets since you would be getting a new vehicle every 3 years No equity is built up Must have a good credit score to qualify Insurance cost is higher