Leasing vs. Purchasing

For some, the decision to lease or purchase can be a complicated one. Both methods have their advantages. The right plan for you will depend primarily on how your vehicle requirements match up with your financial situation. Outlined below are the benefits of each method to assist you in making the decision that's right for you.

Leasing

The benefits of leasing include:

• Monthly payments are usually lower.
• The need for a cash down payment is reduced.
• Upgrading to a more expensive model is easier.
• No obligations/liabilities when returning the vehicle at lease-end, assuming there is no excessive wear and tear or excessive mileage charges.
• Buying the vehicle at a fixed price at lease end is an option.
• Less hassle at trade-in time.

Retail Financing (Purchasing)

Some potential advantages to financing (purchasing) the vehicle:

• Vehicle ownership upon final payment.
• No mileage limitation.
• No penalties for excessive wear and tear.
• No limitations to vehicle modifications.
• Insurance rates may be slightly lower.

This is only a basic comparison of leasing vs. purchasing. If you'd like additional information, please visit the Federal Reserve Board's website, http://www.federalreserve.gov/pubs/leasing/, their website includes informative consumer guides on both leasing and purchasing. Please note, that since pricing may vary, the benefits of leasing vs. purchasing may also vary.