Requires less money upfront, a lower down payment

Protection from potential negative equity, if your vehicle loses value it's not held against you

Lower repair bills due to being almost entirely within the manufacturer warranty periods

Only pay for time in which the vehicle is in your possession

Once the vehicle is paid for in full, the title and the vehicle are 100 percent yours

You have multiple options at the end of your agreement with the dealership

Typically require longer financing terms to reach lower payments

The consumer takes on all of the risk of unforeseen depreciation

Must pay the total cost of using the vehicle, even if upside down

Once vehicle is paid off, if leased, then purchase after lease term ends, you are free to sell the vehicle at any time

Never have to worry about mileage limitations

Insurance costs are generally lower

Lower monthly payments for new vehicles

No upfront sales tax fees

Can still be financed by some lenders even with low credit scores

If vehicle is used only for business purposes, you can claim tax deductions