Should you buy or lease your next car?

If it’s time to replace your car, you’ll need to decide whether to buy or lease your next vehicle. The best option depends on several factors—your budget, driving needs, lifestyle and credit history. Start by comparing the options and identify the best options prior to heading to the dealership.

Leasing

Today more than one out of four new vehicles are leased, according to IHS Automotive. This surge has been influenced by a shift in consumer culture where paying monthly for something is common and the need for the latest technology is high.

Some of the pros of leasing include:

Here are some of the cons of leasing to consider:

Buying

When buying, you pay for the entire vehicle value. Your payment depends on the value of the car, the length of the loan, and the interest rate, although dealers may offer incentives.

Some of the pros of buying include:

Some of the cons of buying include: