before you buy a car

Leasing vs. Buying

Car purchasers have the option to buy or lease a car. Do you know the difference? When you lease, which of these is true?

1. Leased cars often have less upfront fees and a lower monthly payment.
2. There's a limit on how many miles you can drive the car each year.
3. When the lease ends, you turn in the vehicle or pay extra to own it.

These statements are ALL true. You cannot "own" a leased vehicle. If you drive more miles than the lease includes or don't keep the car maintained, you may have to pay a penalty when the lease ends. Leased cars are often covered by a manufacturer's warranty but usually cost more to insure.

Now we're ready to learn more about car financing and how to negotiate a good sales price. Continue to Shopping for Your Car.