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 | The Difference Between Leasing and Buying You have decided you want a new car. Should you obtain a loan, lease or buy outright? There are pros and cons for each method. You should make an informed choice about what is best for you. |
| Paying Cash Less than 10% of new vehicle purchases are made in cash. If you pay the entire cost of your vehicle up front it all yours and you don't owe anyone. However, you don't have that money available for emergencies. Any investment advisor will tell you not to invest in a depreciating asset. |
| Initial Costs Leasing has one very powerful advantage over a loan…lower initial cash outlay. With leasing, your initial cash outlay is limited to your first payment and a security deposit with a good credit rating. |
| Pay For What You Will Use Unlike a loan, where you are obligated to pay for the entire vehicle, leasing allows you to only pay for the portion of the vehicle that you are going to use. This will generally result in a much lower monthly payment. |
| Options vs. Obligations When your lease term has expired there are several options you may take advantage of:
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