Should You Buy or Lease a New Car?

If you're in the market for a new car, you've probably thought about this question. You might have heard that it's not a great idea to lease cars, but that's not the full story.

Believe it or not, there are legitimate reasons why leasing a car might be in your best interest. 

When you buy a car, it's exactly how it sounds: You own it outright. It's yours and nobody can take it away from you (not without a police report, anyway). You pay the full price of the car, either upfront or through a loan, and it's all yours.

Buying a Car

The biggest advantage of buying a car instead of leasing it is…it's yours. When you're done paying off the car, it's 100% yours. It becomes an asset. It's like crossing the finish line of a race and getting the winner's medal – you have a car without monthly payments.

When you lease a car, you rent it for a set period of time – usually a few years. You'll make money lease payments each month until the end of the lease. When the lease is up, the car is no longer yours.

Leasing a Car

The nice thing is lease payments tend to be lower than if you bought the car with an auto loan. And you won't have to worry about maintenance on the car as it gets older because you would have already returned it. 

Leasing also means you can often drive a newer car with fancier features without shelling out a massive down payment each time you lease a new one. And if you're someone who likes that new car smell, leasing might be your jam. Every few years, you get to hop into a shiny new ride.

It really depends on what's important to you. If you're all about long-term commitment and building equity, buying might be your match. But if you're more into changing things up and having lower monthly payments, leasing could be your dance partner.

Things To Consider

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