Ownership You own the vehicle and get to keep it as long as you want.
Up-front costs Includes the cash price or a down payment, taxes, registration and other fees.
Monthly payments Loan payments are usually higher than lease mayments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.
Early termination You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.
Vehicle return You'll have to deal with selling or trading in your car when you decide you want a different one.
Future value The vehicle will depreciate bit its cash value is yours to use as you like.
Mileage You're free to drive as many miles as you want. (but higher mileage lowers the vehicle's trade-in or resale value.)
Excessive wear and tear You don't have to worry about wear and tear, but it could lower the vehicle's re-sale value
End of term At the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next vehicle.
Customizing The vehicle is yours to modify or customize as you like.
Ownership You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.
Up-front costs Typically includes the first month's payment, a refundable security deposit, a down payment, taxes registration and other fees.
Monthly payments Lease payments are almost always lower than loan payments because you're paying only for the vehicles depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.
Early termination If you end the lease early, early-termination charges can be almost as costly as sticking with the contract.
Vehicle return You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.
Future value On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.
Mileage Most leases limit the number of miles you may drive, ofter 12,000 to 15,000 per yer. (You can negotiate a higher mileage limit.) You'll have to pay charges for exceeding your limits.
Excessive wear and tear Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.
End of term At the end of the lease (typically two to four years), you'll have the option to finance the purchase of the the car or lease/buy another vehicle.
Customizing Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you will add will need to be removed before you return the car. If there is any residual damage, you'll have to pay to have it fixed.