In this presentation, we’ll walk you through the major differences between auto leases and purchases – then you can decide on the path that works best for you.

1. swapalease.com
Leasing vs. Buying

2. Is it Better to Lease,
or Buy a Car?
• A common question car shoppers have is
whether they should lease or buy their
next car.
• In this presentation, we’ll walk you through
the major differences and pros and cons of
leases and purchases – then you can
decide on the path that works best for you.

3. How Auto Leasing Works
• Leasing is a way of financing the use of a vehicle.
– Auto leasing is commonly misunderstood to be the
same as renting.
• While under a lease agreement, you pay for a
portion of the vehicle’s value through monthly
payments.
– Think of this “portion” as the part of the vehicle you
use up – keeping in mind how the value of a vehicle
continuously depreciates while it’s on the road.

4. How Auto Leasing Works
• Let’s say you lease a car that costs $25,000.
• At lease end, the residual value of the vehicle
is $18,000.
• During your lease term, your total payments
are equal to the $7,000 depreciation.
– If you wish to buy the vehicle at lease-end, you
will pay the remaining $18,000 dollars.

5. How Auto Buying Works
• When you buy a vehicle, you pay for its entire
cost.
• Unlike a lease, buying a vehicle typically
includes a down payment, high monthly
payments, and full sales tax.
• Once it’s paid off, you own the vehicle. But,
it’s worth less that what you’ve paid.
– However, you are free to sell, trade, or drive the
vehicle as you please.

6. The Pros and Cons of Auto
Buying
Pros
• No restrictions on
mileage or modification
• Builds personal equity
• More flexibility in the
event of a lifestyle
change
• The end-result is owning
a car without any
restrictions or monthly
payments
Cons
• Higher monthly payments
• You become responsible
for repair costs once the
warranty expires
• In order to recoup some
of the costs of ownership,
you will face the
challenges of either
selling or trading the
vehicle

7. The Pros and Cons of Auto
Leasing
Pros
• Lower monthly payments
• Typically the vehicle is
under warranty
• Get the latest in auto
technology and safety
every few years
• No hassle of selling or
trading.
Cons
• Excess wear and tear
concerns
• Limited mileage
• Sometimes higher
insurance premiums

8. Which is Best?
• Whether you choose to lease or buy will
largely depend on your personal
preferences toward ownership and
convenience.
• If you have never leased a car before, a
short term lease may be the best way to
test drive the process.

9. About Swapalease.com
• Swapalease.com is the world’s largest
vehicle lease marketplace.
• Our goal is to match individuals who want
to get out of their lease, with individuals
who are looking for short-term leases with
attractive payments and no money down.

10. Follow Us & Learn More
• Join the conversation on car news and leasing on
the Swapalease.com Facebook page.
• Follow auto and leasing trends at the
Swapalease.com Twitter account.
• Circle Swapalease.com on Google+ for the latest
updates.
• For tips and tutorials on transferring your lease,
check out the Swapalease.com blog.