Leasing payments are typically much lower than finance payments because the payments cover the depreciation and leasing costs rather than the full purchase price of the vehicle spread over the desired term.

If you purchase or lease a vehicle under a business name for business purposes, there are some tax benefits you may be eligible for, such as Section 179 deductions, Bonus Depreciation, and others. Always consult your tax preparation specialist to learn more about potential tax benefits and whether they apply to your vehicle purchase.

In general, leasing comes with fewer maintenance and repair costs because you typically drive the vehicle while it is still under the original warranty and during its best years, when there are very few maintenance requirements. When you purchase a vehicle, you are responsible for any maintenance and repairs during its lifecycle, and the costs will start to come out of your pocket once the warranty expires.

Leased vehicles are generally more expensive to insure. However, leasing companies and lenders each have their own insurance requirements. The cost of insurance depends on many factors, including your driving history, type of vehicle, and the lender's or lessor's requirements.

All vehicles lose value (depreciate) over time. Leased vehicles with lower depreciation will mean lower monthly payments. Depreciation does not affect the monthly payment for financing; however, you own the value of the vehicle, and depreciation for a new car drops dramatically in the first year of ownership.