Buying vs. Leasing a Car

Choosing to buy or lease a vehicle depends on personal preference and lifestyle factors.

Here are some pros and cons to help you determine which choice is right for you:

Leasing

Lower monthly payments
Lower down payment
Better car for less
Lower maintenance costs (factory warranty covers most repairs with 3-year lease)
New vehicle every 2-3 years
No trade-in worries when lease ends
Only pay tax on financed portion of vehicle
Can never own vehicle
Mileage is normally limited to 10,000-15,000 miles annually
Confusing contracts
More expensive over time
Routine wear and tear becomes pricey
Difficult to end contract of lease

Buying

Do anything you want with vehicle; it's yours!
Makes more economic sense
Unlimited usage (no additional fee)
Sell whenever you please
Higher monthly payments
Higher down payment
Responsible for maintenance costs after warranty voids
Trade-in and selling hassles
Value depreciation

Various lifestyles go hand in hand with leasing. If you often entertain business clients and are looking to impress them, leasing gives you the opportunity to drive a luxury car for less. Others may simply like the idea of driving a brand new car in as little as two years. At the end of the day, leasing isn't just about the money.