Buying vs. Leasing

      You just found out you're expecting a baby. Or, your current car broke down. Or, you recently got a raise and want a new set of wheels to celebrate. Whatever the reason, you're in the market for a new car. But now comes a tough decision; should you buy or lease? Most financial experts agree that buying a car makes more sense financially, but leasing provides some short-term benefits that may appeal to you. Whether you're looking for the newest toy on the streets, or a solid family-friendly minivan, it pays to weigh the benefits and negatives of buying and leasing.

      Leasing Benefits

      {}* Lower monthly payments

      {}* Lower upfront cost (down payment)

      {}* Low maintenance cost, due to warranty coverage

      {}* Newer technology and features in car

      Buying Benefits

      {}* No mileage cap

      {}* You own the vehicle and can keep it long past the final payment

      {}* Build equity

      {}* Ability to modify the car

      {}* Less concern over wear and tear

      Leasing Negatives

      {}* Wear-and-tear charges

      {}* Mileage limitation

      {}* Higher insurance rates

      Buying Disadvantages

      {}* Higher down payment and monthly payments

      {}* Repair costs once warranty expires

      {}* You are responsible for selling the car when you are done with it

      If you want to be seen in a new car every few years, leasing may be the way to go. Edmunds recommends signing a three-year lease for the most financially sound decision. But, if you plan on getting a vehicle that will last you for years to come, buying might make the most sense. Your car dealer can help you decide which payment plan will work for you.