Buy or lease?

What is car leasing?

Leasing is a form of financing to consider when you don't want to keep the car for longer than a few years. You typically pay a down payment at signing and then make monthly payments on the depreciation of the car over the term of the lease.

Once your contract is up, if you’re loving the vehicle, you’ll have the option to purchase it via a lease buyout. Or, you can simply return it to the dealership and, if you wish, pursue a new lease.

Consider leasing a car if you:

• Enjoy driving a new car every few years
  
  
• Want a lower monthly auto payment over a similar term as opposed to purchasing a vehicle
  
  
• Expect your transportation needs to change within a year or two
  
  
• Drive 15,000 miles a year or less

What should I know about buying or financing a car?

If you intend to keep the car for many years, financing to purchase may be a better choice. You pay the entire negotiated price of the vehicle using cash, financing, the value of your trade-in, or a combination of all three.

Consider buying a car if you:

• Plan to own the vehicle for more than five years
  
  
• Plan to continue driving the vehicle after it's paid off and enjoy the freedom of no car payments
  
  
• Will likely drive your vehicle more than 15,000 miles per year
  
  
• Enjoy customizing your car or truck

Explore your options

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