When should I take out a car loan vs. apply for a lease?

I'm trying to decide whether to borrow money to buy a car or lease a car. Which solution is best for which scenarios?

Answer
This is a very important question if you’re in the market for a car. Both options have benefits that make them attractive to car shoppers in particular situations.
Borrow money and buy a car if you like to hang on to your vehicles for a long time, and if you’re buying a vehicle with a reputation for long-lasting dependability. Make sure to shop for the best interest rate and loan terms because you will be making those monthly payments for a long time. But since you will have a good vehicle that you still like to drive, you’ll be a winner!
Lease your vehicle if you get bored with your cars and want to switch them every two to three years. You should also consider this option if the monthly payment for a purchase is too big for you to handle.
avatar
Jim Donaher
Answered on Mar 12, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free