Leasing vs Buying

Leasing

When you lease a vehicle, the monthly payments will typically be lower, and since there's no down payment to make, you can keep some money in your pocket. Leasing is a great option if you want to get a better car for less money with fewer upfront costs. If you've always wanted to drive a luxury car but only want to do so for a short period of time, you can stretch your money with a lease.

When it comes to maintenance and repair, you'll have the factory, warranty which can cover the duration of the lease. A leased vehicle can save you money on maintenance and repairs because the lease term may just last three years or so. You don't need to consider maintenance when the car is 10 or 15 years old.

When the lease is over, you can upgrade to the latest edition of the same model, return the car to the dealership, or buy out the remainder of the lease and become the owner.

Buying

When buying a car, it's yours, and it's yours for good. You can throw bumper stickers on the back, modify the audio system, add interior accessories, and nobody will say a word. You don't have to think about returning the car to the dealership as you do with a lease.

You'll also have the freedom to trade in the car in whenever you see fit. That may be after five years, but it may be after eight, or perhaps 10 years. Sell the car back to the dealership, or sell it privately. It could even be a great car for the kids down the road.

Mileage is another factor. Leases may have mileage restrictions, but that's not the case when you buy a car. You'll want to think about how much driving you do each year. If you are often driving over 15,000 or 20,000 miles each year, buying likely makes more sense.