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Health & Fitness

Buying vs. Leasing a New Car: Which Option is Best for You?

Buying or leasing an automobile involves several variables; consider your options before making a decision.

It seems that everyone in the market for a new car goes through the same debate: buying vs. leasing. Which option is best, and when should consumers consider choosing one over the other? It's important to know the benefits and drawbacks of each, so that a smart decision can be made based upon each person's best interests.

First, let's take a quick minute to review what happens when cars are purchased, versus when they are leased. When buying a new or used car and financing with an auto loan, after all of the monthly payments are made, the buyer owns the vehicle outright. When leasing a vehicle, after the agreed upon payments and lease term runs its course, the individual either needs to buy that car, or buy or lease a new vehicle.

The upsides to leasing a vehicle are that it provides consumers with the ability...

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