There are many factors to consider if you are thinking, “should I lease or buy a car?” Depending on your financial circumstances and your vehicle needs, the best option for you can differ. Take some time to consider your situation to figure out if you should lease or buy a car.

If your main goal is to get the lowest payments possible with a short-term commitment, then leasing a car may be the best for you. You will also pay a lower down payment when you initially sign your lease. At the end of your lease term, you can simply return the vehicle to the dealership.

How to Determine Whether to Buy or Lease a Car

Since most repairs and maintenance on leased vehicles are covered by a warranty, this option can be better for you if you want to avoid dealing with car trouble.

Getting an auto loan vs leasing a car comes with the major benefit of eventually owning the vehicle you are paying for.

With a lease, you do not retain any of the equity you spent on the vehicle.

When you purchase a car, you can also make modifications without worrying about breaking your lease contract. 

Leased vehicles typically come with yearly mileage limits. Driving over the limit will cost you extra money. Buying a vehicle does not come with any mileage limits.

Finally, when you buy a car, you will be able to sell it at any time after you have completed your payments and are the sole owner of the vehicle.