Lease vs Buy

Vehicle lease payments are oftentimes less expensive in comparison to car financing and loan payments as the standard lease format is basically renting with the option to purchase near the final payment of your lease term. Keep in mind when leasing that you will need a decent credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the lower rate auto loans. Although it might likely increase your monthly payments, it's also smart to get a model with the features you need or want, as personal satisfaction is often priceless.

Auto leases often include regular vehicle maintenance & repair. It is important to remember this when calculating monthly costs of ownership vs leasing. Regardless of what make and model you buy, mechanic bills are an unknown cost that can rapidly add up. And for those who are not certified mechanics with a full toolset and hydraulic jack in the garage, leasing may be the best option for peace of mind.

In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning absolute ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.