Here in Germany the difference is mostly tax related: - if you buy a car on a loan, you have to deduce it from tax in one batch (as you now own a car). edit: i

Here in Germany the difference is mostly tax related: - if you buy a car on a loan, you have to deduce it from tax in one batch (as you now own a car). edit: it's also part of your assets with has a set of ramifications - if you lease it, you can deduce the montly payments (as you don't own the car). note that in the case of leasing the offering company can request the car back after the leasing ended or if they so whish sell it to you for a small price