Your Next Car: Buy or Lease?

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Real Estate

Your Next Car: Buy or Lease?

Pros of leasing:

*Small or no down payment

*Lower monthly payments (even compared to 0 percent loan)

*A warranty for the life of the lease

*Driving more car than you could afford to buy

*Brand-new car every 2-5 years

*You pay for only a portion of the vehicle's cost

Cons of leasing:

*Limited mileage

*You’ll never actually own the car

*Permanent monthly payment

*Penalties for turning the car in early, undue wear and tear, going over the pre-specified mileage limit

Pros of buying:

*One day, it’ll be yours, all yours

*No limit to mileage

*End to payments

*Lower auto insurance cost

Cons of buying:

*Long-term cost of buying a car is less than leasing

*Less complicated than leasing

*A portion of every payment you make is lost to depreciation

*Good-sized down payment

*You pay for the entire cost of a vehicle, regardless of how many miles you drive