New Car Leasing vs Buying

Car lease payments are often less expensive in comparison to car financing and loan payments as the typical lease layout is basically renting with the option to buy out near the end of your lease term. Consider when leasing that you'll need a nice credit score, and will be asked to carry collision and comprehensive insurance, though the same can be said for the lower rate auto loans. Although it may add to your monthly payments, it is also best to get a model with the features you need or want, as personal satisfaction is often priceless.

Auto leasing often includes regular vehicle maintenance & repair. It's important to keep this in mind when calculating monthly costs of ownership vs leasing. No matter what make and model you buy, mechanic bills are an uncertain cost that can rapidly add up. And for those of us who aren't certified mechanics with a hydraulic jack and full toolset in the garage, leasing can be the best option for peace of mind.

Generally speaking, a new car or truck lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For the best investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.