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

Answered by Car Loans Expert Jim on December 23, 2020

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

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Jim

Car Loans Expert

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.


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