Pros and Cons of Leasing
- Small or no down payment.
- Lower monthly payments (even compared to 0 percent loan).
- A warranty for the life of the lease.
- Driving more cars than you could afford to buy.
- Brand-new car every 2-5 years.
- You pay for only a portion of the vehicle's cost.
Cons of Leasing
- Limited mileage.
- You’ll never actually own the car.
- Permanent monthly payment.
- Penalties for turning the car in early, undue wear and tear, going over the pre-specified mileage limit.
Pros of Buying
- One day, it’ll be yours, all yours.
- No limit to the mileage.
- End to payments.
- Lower auto insurance cost.
Cons of Buying
- Long-term cost of buying a car is less than leasing.
- Less complicated than leasing.
- A portion of every payment you make is lost to depreciation.
- Good-sized down payment.
- You pay for the entire cost of a vehicle, regardless of how many miles you drive.