Buying Vs. Leasing

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BUYING

Pros

  • You own your car
  • You can sell or trade your car at any time
  • You aren’t charged for wear and tear
  • You can customize your car
  • You can drive however many miles you want to

Cons

  • You’ll owe the cash price and down payment, plus taxes and other registration fees up front
  • Loan payments for buying a car are higher than lease payments and have steeper interest
  • You’ll experience a decrease over time in the cash value of your car

LEASING

Pros

  • A down payment up front isn’t necessary; you’ll only owe your first month’s payment and a refundable security deposit
  • Lease payments are typically lower than loan payments
  • The car’s decrease in value won’t affect you

Cons

  • You don’t own your vehicle
  • Early termination charges, should you end your lease early, could be higher than the cost of keeping the car
  • You’ll be limited to the amount of miles annually you can drive, typically 12,000 to 15,000 a year
  • If you have excessive wear and tear, you’ll be charged extra
  • If you do make customizations, you’ll have to restore the car to original condition before you return it