1. Buying vs. Leasing
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2. What is Buying?
Buying a car is when you pay cash for a car and own the car immediately, or you pay a down payment and a monthly payment to later own the vehicle
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3. What is Leasing?
Leasing is when you rent a car from a dealer for usually months.
Price is determined by the difference between the purchase price and the predetermined value of the car at the end of the lease period.

4. The Advantages of Buying
You own the car– so you can keep it as long as you like
You can alter the car any way you want
As you make payments, you gain equity in the vehicle until it’s eventually all yours
You can drive as much as you like. There's no excess mileage penalty.
You have more flexibility since you can sell the car whenever you want.

5. The Advantages of Leasing
Monthly lease payments are typically much lower than compared to buying the same car.
Low or no down payment
There’s often no down payment required when leasing, or only a low one.
You can drive a better car for less money.
When your lease is up, you can lease another vehicle so you’re always driving a late-model vehicle that’s usually covered by the manufacturer’s warranty
Get to enjoy the most trouble-free two or three years of the vehicle’s life.
When your lease is up, you bring the vehicle back to the dealership and either lease another new one or simply walk away
Lower repair costs because you’re always driving a late-model vehicle that’s usually covered by the manufacturer’s warranty.
You can more easily transition to a new car every two or three years.
There are no trade-in hassles at the end of the lease.
You don’t own a car at the end of the lease – although there is an option to buy.

6. The Disadvantages of Buying
Monthly payments are higher than lease payments.
Once the warranty expires, you're responsible for repair costs.
Term for payments are longer
It requires a higher down payment to avoid being "upside down" in the loan, meaning you owe more than the car is worth.
You face possible trade-in or selling hassles when you decide to get your next car.
More of your ready cash is tied up in a car, which depreciates in value.

7. The Disadvantages of Leasing
There are mileage restrictions - You have a limited number of miles in your lease contract, typically 12,000 to 15,000 miles a year. If you drive more than that, you’ll have to pay an excess mileage penalty of 10 cents to as much as 25 cents for every additional mile.
You don’t own the car
You will get charged if you try to terminate the lease early
You need good credit to get a lease
Leasing typically costs you more than an equivalent loan, in part because of higher finance charges.
Once you’re in the leasing habit, monthly payments go on forever.
You must maintain the vehicle in good condition, or you’ll have to pay excess wear-and-tear charges when you turn it in.
If you need to get out of a lease before it expires, you may be stuck with thousands of dollars in early-termination fees and penalties—all due at once. This could equal the amount it would cost had you stuck with the lease for its entire term.
You aren’t allowed to customize your vehicle in any permanent way.

8. If Money is a Problem, Lease
The short term cost of leasing is significantly less than buying
The medium-term cost of leasing is about the same as buying
The long-term cost of leasing is always more than the cost of buying.

9. Just a few Things to Help You Decide Which is Right for You
Lease if:
You like to have a new car every 2-4 years
Don’t like to be bothered with repairs
You know you will keep the car for the full term

10. You want to drive a nicer car than you can afford to buy
You don’t have the money for a down payment
You have good credit

11. Finance/Buy if: You don’t mind driving the same car for many years
You think you may have to give up the car unexpectedly
You are buying a car for personal use
You want to build equity
Your credit is poor