| Initial Costs |
A down payment, taxes,
registration, and/or other fees and charges. |
Capital cost reduction
(down payment), security deposit (refundable at the lease's
end), one month's payment and/or other fees and charges. |
| Cost by Month |
High payments due to the
interest on a loan for the entire value of the vehicle, plus
associated fees. |
Usually lower, based on
a monthly lease rate, depreciating value, and state/local
taxes or fees. |
| Mileage |
Drive as much as you want.
But remember that mileage reduces the resale or trade-in value. |
Base mileage permitted
is defined by the lease, commonly in the 12,00-15,000 range.
Higher limits, which will raise the payments, are permitted
on negotiation. |
| "End" Value |
You as the owner, take
the full brunt of depreciation due to wear and tear or sales
trends. |
The leasing company bears
responsibility for any depreciation beyond the assessed amount. |
| Maintenance |
You are responsible for
all upkeep. A car in good condition has a higher re-sale or
trade-in value. |
You are responsible for
normal maintenance. Any damages considered excessive, may
be penalized at the end of the lease. |
| Changing Your Mind |
If you decide to sell a
car before the end of a loan term, there will be penalties. |
If you end a lease early,
there will be penalties levied. |
| At Term Expiry |
When the loan is paid off,
the car is yours. |
At the end of the lease,
you will need to negotiate a new arrangement for another car. |
