Should you buy or lease? Here's a comparative analysis so that you can decide what's right for you.
Buy
Ownership: You own the car once paid in full
Up-front cost: Cash price or down payment plus taxes, registration and other fees
Monthly payments: Loan payments have interest and other finance charges, which can be higher than lease payments
Early termination: You can sell or trade your car any time you want to
Vehicle return: If you want a new car, you'll have to consider selling or trading your current car in
Future value: Your car's cash value will decrease over time
Mileage: You're free to drive however many miles you choose
Excessive wear & tear: Wear and tear will depreciate the value, but you won't be charged for it
End of term: You have no more payments at the end of the loan term
Customizing: You can customize/model your car however you want
Lease
Ownership: At lease maturity you have the option to turn it in, buy it or sell it.
Up-front costs: First month's payment & taxes, registration, and other fees, plus refundable security deposit
Monthly payments: Lease payments tend to be lower than loan payments
Early termination: Early-termination charges can be exceedingly expensive if you end the lease early
Vehicle return: Just return the car at the end of your lease and pay end-of-lease costs
Future value: The car's future value doesn't financially affect you
Mileage: Most leases limit you to 12,000 - 15,000 miles a year
Excessive wear & tear: You're responsible for excessive wear & tear and can be charged extra
End of term: You'll have to purchase the car or lease or buy another at the end of your lease
Customizing: You'll have to remove anything you added to the car before you return it
