Leasing vs Buying an auto

Basic Advantages and Disadvantages

ADVANTAGES
LEASING
 
BUYING

lower monthly payments

little or no down payment

more expensive car for less money

more cash available for other purchases

sales taxes paid over term of lease

possible tax benefits - check with your accountant

 

equity and ownership

DISADVANTAGES
LEASING
 
BUYING

no equity/ownership in the vehicle

potential early termination liability

potential end-of-lease costs like excess wear and tear and additional mileage charge

 

higher initial cash outlay

higher monthly payments

fewer dollars available for other uses