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Buying a car and leasing a car both have pros and cons. While one might be a good decision for someone else, it might not be the right one for you. When deciding between leasing and buying, ask yourself these questions:
If you don’t have a lot of disposable income or savings in the bank, you might want to lease a car because general maintenance and repairs are usually handled for you during the term of the lease. If you purchase a car, all repairs are your responsibility after its warranty expires.
Good credit can get you a better rate on a car loan or lease. However, lease payments are typically lower than car loan payments. Assuming you put nothing down, a loan is made for the full cost of the car, while a lease is based only on a portion of the car’s value.
If you plan on using the vehicle primarily for business, leasing a car may be your best bet. Lease payments can be deducted as an expense on your taxes. You can also lease a new vehicle every few years and never experience the problems that come with owning an aging vehicle.
The following sums up the pros and cons of both leasing and buying a car:
Leasing a Car
Buying a Car
Weigh your options carefully before deciding which type of financing is right for you. Talk to your dealership representative for more information, and understand the exact terms of your lease or purchase before making a final decision.