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: 60 months

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
Customer Options

When Financing:

  • Customer will own the vehicle without a lien after the term of the loan.

When LEASING, customer delays the purchase decision and has options:

  • Buy it and keep the vehicle
  • Buy it and sell the vehicle at a profit (If market above residual value).
  • Buy it and trade it for another vehicle (if market above residual value).
  • Extend the lease
  • Return the vehicle to the dealer with no resale or trade-in hassles.


Wear & Use Considerations

When Financing:

  • Owner is responsible for all wear and use.
  • As wear and use increases, vehicle depreciates
  • At time of trade or sale, wear and use negatively affects the market value of vehicles.


  • Lender is responsible for all normal wear & use.
  • Lessee is charged for excess wear and use.

Refer to sample condition report for example of both normal and excess wear, as well as to the Excess Wear & Use Protection Plan brochure and the Lease-End brochure. Note that the EWU Protection Plan is not available in all states.

Mileage Considerations

When Financing:

  • Owner is responsible for miles - ALL
  • AAA Study mid-size sedan, 5 years*. - .374/mile


  • Standard mileage allowance - 15,000/year
  • Additional miles at inception - .10/mile
  • Excess miles at lease end - .15/mile

*AAA's 2012 "Your Driving Costs" study

Considering Paying Cash?

If paying cash to avoid interest:

  • In exchange for all the payment upfront, the Lender discounts the money factor and rent charge.
  • The cost of money represented by the rent charge may be lower than other lease or finance programs

If Paying cash to avoid monthly payments:

  • There are no monthly payments with a 1-Pay lease

Investment or Expense?

  • It may not be the best use of a customer's cash to tie it up in a fixed asset (the vehicle that depreciates), rather than something that might increase in value.
  • Leaves cash available for an emergency or opportunity
  • Fixed residual value (based on mileage and condition) provides market protection.
Please speak with our trade advisor for more information.
Pricing and Availability Conditions
All pricing and details are believed to be accurate, but we do not warrant or guarantee such accuracy. The prices shown above, may vary from region to region, as will incentives, and are subject to change. Vehicle information is based off standard equipment and may vary from vehicle to vehicle. Call or email for complete vehicle specific information. ΒΆ *All vehicles are one of each. All Pre-Owned or Certified vehicles are Used. A dealer documentary service fee of up to $150 may be added to the sale price or capitalized cost. All offers expire on close of business day subject content is removed from website, and all financing is subject to credit approval. Prices excluded tax, title, and license. Any agreement is subject to execution of contract documents. It is the customer's responsibility to verify the existence and condition of any equipment listed. **Price does not include dealers installed accessories. Prices shown are Jaguar of Tacoma suggested retail prices only, actual price may vary. Actual vehicle/accessory costs, labor and installation vary. Dealers set their own prices.