Which is better leasing or buying a car

Going over that number could mean being penalized at a rate of about 15 cents a mile. For many drivers, the idea of being locked into one specific car over a long time period is … less than ideal. If that sounds like you, leasing might be your best bet. But leases may not be as flexible as you think. If you get tired of your car or your needs change, you may want to think twice about turning the car in before the end of your lease.

If you break your lease early , you could be on the hook to pay some steep penalties. You could even be required to cover all of the remaining lease payments and pay additional penalties on top of any other fees. As a car buyer, you have more freedom to get rid of your vehicle. Not sure how frequently you plan to switch vehicles? Shopping for good rates and applying for prequalification could help you crunch the numbers and make a well-calculated decision.

Ultimately, the best choice for you depends on your preferences, your budget and your ability to handle the expenses you might incur down the road.

Read this post in Spanish. Image: Smiling woman taking selfie with new car in showroom. You may also want to consider how much flexibility will matter to you down the road. Advertiser Disclosure We think it's important for you to understand how we make money. Finance : Usually include the cash price or a down payment, taxes, registration fees, possibly some other fees.

Useful Tip! You can get a longer-term loan to reduce your monthly payments, but you might wind up paying more in fees and interest over the long run and could wind up with negative equity on the vehicle. Input details of the vehicle and its usage and it will show you an estimate of its resale value over a 5 year period. But if you live in the suburbs or in more rural areas and use it all the time, it might be better to take out a loan and avoid any distance penalties.

You have no restrictions on how many miles you can drive your new vehicle. Mileage Most leases limit the mileage to 10, miles per year.

You will have to pay charges for exceeding the limit. At the end of the loan term, the vehicle is paid off. You can sell or trade in your car when you want a different one.

Cash price or a down payment, taxes, registration, and other fees. Upfront Costs. Monthly Payments. Most leases limit the mileage to 10, miles per year.