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