Choose a shorter term
Leasing can provide more flexibility than a longer vehicle loan, making it easier to respond when your priorities change.
Understand the flexibility, payment structure and lease-end options so you can decide which path makes the most sense for you.
Leasing may make sense when flexibility matters more than long-term vehicle ownership.
Shorter terms can make it easier to adjust when your family, work or driving needs change. Instead of financing the vehicle’s entire purchase price, lease payments are generally based on its expected depreciation and applicable lease charges during the term.
The right choice depends on your budget, mileage and how long you plan to keep your next vehicle.
Leasing can provide more flexibility than a longer vehicle loan, making it easier to respond when your priorities change.
Because lease payments are generally based on the vehicle’s expected use and depreciation during the term, they may be lower than financing a comparable vehicle.
Rather than financing the vehicle’s entire purchase price, lease payments are generally based on its expected depreciation during the lease term, along with applicable rent charges, taxes and fees.
At the scheduled end of the lease, you can return the vehicle and explore another car, truck, SUV or van that fits your current needs.
The projected value of the vehicle at the end of the lease is established when the agreement begins. That creates a clearer process than deciding how and when to sell or trade a vehicle later.
Complete the scheduled lease-end process and return the vehicle according to the terms of your agreement.
Explore another vehicle when your preferences, mileage or transportation needs have changed.
A leased vehicle used for qualified business purposes may offer potential tax deductions based on its business use. Eligibility, deduction methods and deductible amounts vary, so consult a qualified tax professional before making a decision.
Tax information is provided for general informational purposes only and is not tax or legal advice.
Learn what to expect from the leasing process, from selecting a vehicle through pickup and delivery.