10 Steps to Finding the Right Car for You
Step 3: Should you lease or buy your next car?
A lease requires little or no money up front and offers lower monthly payments. But when the lease ends, you are left without a car and will need to replace it. Buying a car is more expensive initially and the monthly payments are higher. But at the end of the loan, you will own a car you can still drive or sell.
Advantages of Leasing
You can drive a more expensive car for less money.
You can drive a new car every few years.
There are no trade-in hassles at the end of the lease.
Advantages of Buying
When interest rates are low, it makes more financial sense to own a car rather than lease it.
There are no unexpected mileage penalties for increased driving.
There's more flexibility — you can sell the car whenever you want.
If you are still unsure whether to lease or buy, try letting the numbers help you make the right decision. Go to Edmunds Purchase Calculators to calculate your monthly auto loan payment vs. your monthly lease payment.
