By : Gregg Hall    From: Article2008.com

There are many important differences to consider when you are deciding whether to get a loan to purchase a car or lease a car from a dealership. Some of the considerations are whether it is business or personal, how many miles you will drive and how long you intend to keep the vehicle. 

With a conventional loan the car belongs to the bank that gave you the loan until you have paid off the loan. Then, the car becomes yours. If you are the type that keeps a car forever this is probably for you. 

With a lease you are essentially renting the car from the dealership. The lease is like a rental agreement. You make monthly payments to the dealership. But the car does not belong to you. When the lease ends, you have to return the car to the dealership. 

Now let’s look at some other considerations and comparisons between a lease and a regular loan. 

Wear and tear: 

No additional costs for wear and tear in your loan agreement. 
Most leases charge you extra money for any damage they find at the end of the lease that goes beyond “normal wear and tear.” 

Monthly payments: 

Payments are higher with a loan; however, at the end of the loan, you own the car. 
Payments are lower with a lease. This is because you are not purchasing the car; the dealership still owns it. Once your lease ends, you turn the car back in and the dealership can sell it or lease it to another customer. You may decide to purchase the car at the end of the lease; however, the total cost ends up being more than it would have been if you bought the car instead of leasing it. 

Mileage: 

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