Getting a new car every few years without the hassle of trading in or selling the car
Lower payments than a car loan
Disadvantages of leasing are:
Paying more in depreciation costs than you would if you bought the car outright
Mileage limits
Possibility of excess wear and tear charges
Benefits of buying a car:
You own the car at the end of the term
You can drive as many miles as you want
Comes with a manufacturer’s warranty
Downsides of buying a car:
Depreciation is killer
You’re responsible for upkeep after warranty expiration
If you’re still unsure about what to do, find a vehicle you like and review both a loan and lease contract for it. Reviewing each agreement should give you a better idea of what each requires, along with the terms and conditions.
Regardless of whether you buy or lease a car, you’ll need full coverage car insurance on it. To easily shop around and explore your car insurance options, use the
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.