Question 1

Is it better to lease or buy?

Accepted Answer

It depends on your priorities. Buying costs less long-term and builds equity. Leasing offers lower monthly payments, always having a new car under warranty, and no resale hassle. High-mileage drivers should buy; those wanting new cars every 3 years might prefer leasing.

Question 2

When does buying make more sense?

Accepted Answer

Buying wins if you keep cars 5+ years, drive high mileage (15,000+ annually), want to customize the vehicle, prefer no mileage restrictions, or want to eventually have no car payment.

Question 3

When does leasing make more sense?

Accepted Answer

Leasing works well if you want a new car every 2-3 years, drive under 15,000 miles annually, prefer warranty coverage, want lower monthly payments, or use the car for business (potential tax benefits).

Question 4

What about the equity I build when buying?

Accepted Answer

When you buy, you own an asset worth money when paid off. A $30,000 car might be worth $12,000 after 5 years. Leasing builds no equity, but the savings can theoretically be invested elsewhere.

Lease vs Buy Calculator - Car Purchase Comparison Tool