The Pros and Cons to Buying and Leasing a Car

Updated: Sep 18, 2021

Deciding whether to buy or lease a car is an age-old challenge. There are no perfect answers, just important considerations based on what is important to you.

There are several things to consider when you're trying to get a new ride. One of the most common topics you may find yourself debating is the question of whether to buy or lease your next car. Both choices are great though it solely depends on your preference for which is best for you. First and foremost, we will explain the distinctions between buying or leasing a car.

The Advantages of Leasing a Car

When a car is leased, it simply means that it is rented from the dealership. When you opt for a lease, you’ll be given a period during which you’ll drive the car. After the time runs out, the vehicle will be returned to the dealership, unlike when you buy a car.

The great stumbling block about leasing a car is that you don’t acquire any equity in it. Just like when an apartment is rented, when it comes to leasing a car, you only make payments monthly but lose all claim to ownership when the lease runs out. Additionally, you’ll have to pay for any excessive wear and tear in your leased vehicle when the lease expires.

Nevertheless, on the good side of things, the advantages include the following:

  • Lesser Monthly Payments: Most often, lease payments are lower than monthly loan payments when considering your budget. It’s always important to confirm that your insurance deals with any bills that may be required, even if the car is totaled before the lease expires. For that, you may want to have a look at the totaled car value calculator.

  • A New Car Every Few Years: Well, if you have a knack for often riding out on brand new wheels, leasing might be the perfect option for you. After a few years, w