Should I buy or lease?

Disadvantages of Car Leasing

• You don't own the car at the end of the lease.
• Your mileage is limited to a set amount, typically 12,000-15,000 miles a year (excess miles are paid for at the lease termination).
• Lease contracts are confusing.
• Leasing is more expensive in the long run (as opposed to buying and driving until the wheels fall off).
• Wear-and-tear charges can add up (paid at lease termination).
• It's costly to terminate a lease early if your driving needs change.

Advantages of Car Buying

• Pride of ownership — you can modify your car as you please.
• Car buying is more economical in the long run unless you buy and trade-in regularly.
• No penalty for driving excess mileage
• Increased flexibility — you can easily sell the car whenever you want.

Disadvantages of Car Buying

• Higher down payment is generally required.
• Higher monthly payments
• You're responsible for maintenance costs once the warranty expires.
• Trade-in or selling hassles when you're ready to get rid of your car
• More of your ready cash is tied up in a car, which depreciates, rather than an investment that appreciates.

Look to Edmunds.com for more valuable information and analysis!