Guides / Loans, leases, trade-ins
Lease or buy?
When leasing can make sense, and the costs to read carefully.
Leasing means paying for the car's expected depreciation over the lease, plus fees and a finance charge. Buying means paying for the whole car, and keeping its remaining value.
Leasing can fit if
- You want a new car every few years
- You drive a predictable number of miles under the limit
- You keep cars in very good condition
Read carefully
- Mileage limits and the cost per extra mile
- Wear-and-tear charges at return
- Acquisition and disposition fees
- The money factor (the lease's finance rate)
- Early termination costs
General information for car buyers, not financial advice. Costs vary by location, driving and market. Easy Auto Compare isn't a dealer, lender or insurer and takes no referral fees.