Your Next Car: Buy or Lease?
Pros and Cons of leasing:
l Small or no down payment
l Lower monthly payments (even compared to 0 percent loan)
l A warranty for the life of the lease
l Driving more car than you could afford to buy
l Brand-new car every 2-5 years
l You pay for only a portion of the vehicle's cost
Cons of leasing:
l Limited mileage
l You’ll never actually own the car
l Permanent monthly payment
l Penalties for turning the car in early, undue wear and tear, going over the pre-specified mileage limit
Pros of buying:
l One day, it’ll be yours, all yours
l No limit to mileage
l End to payments
l Lower auto insurance cost
Cons of buying:
l Long-term cost of buying a car is less than leasing
l Less complicated than leasing
l A portion of every payment you make is lost to depreciation
l Good-sized down payment
l You pay for the entire cost of a vehicle, regardless of how many miles you drive