How do loans and leases differ?
When you take out a loan, all of the money used to pay it off applies
to your eventual ownership of the vehicle. The initial down payment and
principal on the loan cover the total cost of the purchase. Lease
payments, however, apply only to the use of the vehicle. The total sum
of payments covers the vehicle's depreciation over the time you drive it
and is usually less than the outright price of the vehicle.
