A Preventive Law Service of The Office of The Judge Advocate
Keeping You Informed On Personal Legal Affairs
Leasing an Automobile?
Whether leasing an auto is right for you or not depends on several factors, including
your lifestyle, finances, and personal preferences. If you are not careful your military
employment may adversely affect your ability to complete the term of your lease and
cost you money. For example, will your auto lease continue if you deploy or do you
have a “termination” option?
Under the Federal Consumer Leasing Act, you have a right to information about the costs and terms
of a vehicle lease. This information will help you compare lease offers and negotiate a lease that best
fits your needs, budget, and driving patterns. Leasing differs from buying, here’s how . . . (View Keys
to Vehicle Leasing @ http://www.federalreserve.gov/pubs/leasing/#payments).
LEASING: You do not own the vehicle. You get to use it but must
return it at the end of the lease unless you choose to buy it.
BUYING: You own the vehicle and get to keep it at the end of the
LEASING: Up-front costs may include the first month's payment, a
refundable security deposit, a capitalized cost reduction (like a
down payment), taxes, registration and other fees, and other
BUYING: Up-front costs include the cash price or a down payment,
taxes, registration and other fees, and other charges.
LEASING: Monthly lease payments are usually lower than monthly
loan payments because you are paying only for the vehicle's
depreciation during the lease term, plus rent charges (like
interest), taxes, and fees.
BUYING: Monthly loan payments are usually higher than monthly
lease payments because you are paying for the entire purchase
price of the vehicle, plus interest and other finance charges, taxes,
LEASING: You are responsible for any early termination charges if
you end the lease early.