Should I buy or should I lease?

Which is best? That depends on your needs. Let’s break it down.

When you buy a car:

• You pay the entire cost.
• The mileage you put on it doesn’t matter or how long you keep it.
• If kept less financed term, trade value is subject to market conditions.

When you lease a car:

• You only pay the part of the car’s value that is used during your lease term (i.e., its depreciation).
• There is a term agreement for the number of months you lease (usually between 24-36 months); in addition, there is a cap on the number of miles you can put on your leased vehicle without penalty.
• You are required to make only a small down payment (1-2 monthly payments in advance) or no down payment.
• Damage reported to Carfax, if properly repaired, does not affect you.

Buying may be best for you

If you plan on keeping your vehicle 5 years or longer or drive a lot of miles every year.

Leasing may be best for you

If your annual mileage in 15,000 or less, and you like to drive a new car every 3 years.