Leasing gives you a lower monthly payment and a new car every few years. Buying costs more per month and leaves you with an asset at the end.
In this article
- Who leasing suits
- Who buying suits
- Hidden costs of a lease
Who leasing suits
People who drive under the mileage limit, want a new car often and like predictable costs. A lease usually includes the warranty period.
| Factor | Lease | Buy |
|---|---|---|
| Monthly payment | Lower | Higher |
| Ownership | None at the end | Yours |
| Mileage | Limited (10,000 to 15,000) | Unlimited |
| Customization | Restricted | Free |
| Long-term cost | Higher if you always lease | Lower over a long period |
Costs are typical ranges. Check your own situation and local prices.
Who buying suits
Drivers who keep cars for many years and drive a lot. After the loan ends, you have no payment and a car you can drive for years.
A lease is a long rental, and it is priced like one.
Hidden costs of a lease
Excess mileage and wear charges add up. Ending a lease early can be very expensive.
Step by step
- Estimate your yearly mileage
- Compare total cost over six years
- Read lease terms carefully
- Check the residual value
Practical tip
Ask for the lease’s money factor and convert it to an interest rate by multiplying by 2,400. It shows what you are really paying.
Bottom line
Lease if you want low payments and a new car. Buy if you keep cars for a decade.
Specifications, prices and rules change. Confirm current details with the manufacturer or the relevant authority before you buy or repair.
