Buy vs. Lease

What Affects the Future Vehicle Value?

Customer is responsible for controllable and non-controllable factors:

  • Mileage
  • Condition
  • Accidents
  • Higher gas prices
  • New models/Enhanced technology
  • New vehicle Incentives
  • Poor third-party reviews
  • Economy/market conditions
  • Weak resale value

Finance term



Finance end-of-term options

  • Keep the vehicle
  • Sell or trade the vehicle

Customer is responsible for controllable factors:

  • Mileage
  • Condition

Residual = purchase price

Lease term



Lease end -of- term options

  • Purchase the vehicle
  • Sell privately/pay off residual
  • Negotiate trade-in
  • Extend the lease
  • Return lease vehicle