Lease vs. buy a car: how to decide
Updated
Leasing means paying for the part of a car's value you use over a set term and mileage, then returning it or buying it out. Buying means paying for the whole car, by cash or loan, and keeping it. Leasing often suits people who drive predictable miles and like a newer car every few years; buying suits long keepers.
Side by side
| Lease | Buy | |
|---|---|---|
| What you pay for | The car's expected loss in value over the term, plus a finance charge, taxes and fees | The whole car, plus interest if you borrow, taxes and fees |
| Monthly payment | Usually lower for the same car | Usually higher, until the loan is paid off |
| At the end | Return the car, or buy it for the agreed residual | You own it, to keep or sell |
| Mileage | A yearly allowance; extra miles are charged | No limit |
| Wear and changes | Excess wear is charged at return; modifications are limited | Your car, your choice |
| Ending early | Often costly | Sell or trade it any time; you may owe more than it is worth early on |
Questions that decide it
- How many miles do you drive a year, and how predictable is it?
- How long do you usually keep a car?
- Do you want the lowest monthly payment, or the lowest cost over many years?
- Do you want to own something at the end?
Whichever you choose, negotiate the price the deal is built on: the selling price for a purchase, the capitalized cost for a lease. Our lease broker page explains the lease numbers.
Not sure? The first call with DriveEasier is free: 15 minutes on buy or lease, and what we would go after on your car.
Want someone to negotiate it for you?
Tell us the car. We source it, negotiate it and bring back one exact quote. Flat $1,000.