If you’re in the market for a new car, you may be debating whether to buy or lease. It’s a big decision. After buying a house, a new car is the second biggest purchase most people will ever make.
To help you through this milestone, here are the pros and cons of each option:
Pros and cons of leasing a car
| Pros: | Cons: |
| No or low down payment | Excess mileage penalties |
| Usually covered by warranty | Fees for excessive wear and tear |
| Lower monthly payments | Early lease termination fees |
| No upfront sales tax fees | Generally higher insurance premiums |
| No depreciation concerns | Monthly payments |
Summary: If you like always driving the latest models or don’t have the credit or money to buy a new car, leasing may be a smart option.
Pros and cons of buying a car
| Pros: | Cons: |
| Eventual ownership of car | Unpredictable resale value |
| No mileage limits | Higher monthly payments |
| Ability to sell car anytime | Post warranty maintenance expenses |
| Freedom to customize/modify | Depreciates over time |
| Generally lower insurance costs | Large down payment |
Summary: If you plan to keep your car for a long time, modify it or drive a lot of miles, it makes more sense to buy.
Source: https://blog.nationwide.com/should-i-buy-or-lease-a-car/