You're in need of a new car, but does buying or leasing make the most financial sense for you? Many go into the purchase thinking they don’t have the finances to cover the cost of a new car. In these cases, leasing may sound like the perfect fit. Leasing may also be a good option for those who are looking to drive the latest car models, but don’t want to own their car. However, taking out an auto loan to buy a new or used car can help you save a lot of money in the long run compared to leasing a car.
Keep in mind that although monthly payments and interest rates will likely be higher when you purchase a new car, you can sell, donate or gift your vehicle in the future because you own it. Leasing, on the other hand, can mean lower monthly payments and interest rates. However, you won’t be investing your money on an owned vehicle.
Should you buy or lease a car?
To help you determine whether you should buy or lease your next car, we’ve created this simple auto lease calculator. Get the net cost of buying vs. leasing a vehicle by simply entering the fields below to determine if buying or leasing a car is right for you.