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Lease vs buy

Check the statements that fit your situation, then review a quick read on whether leasing or buying tends to match better. If you have already used our worksheets in this browser, we pull in those numbers for a side-by-side nudge (still illustrative — not tax or legal advice).

Often a plus

  • Lower monthly payment than a purchase loan for the same car (you pay for depreciation, not full price).
  • New vehicle every few years with factory warranty coverage most of the term.
  • Less long-term repair risk while you stay within mileage and wear rules.
  • Sales tax can be structured differently (varies by state); sometimes easier cash flow at signing.

Watch-outs

  • Mileage overage and excess wear charges at turn-in.
  • No ownership equity; disposition or purchase-option fees at the end.
  • Harder to exit early without paying remaining obligations.
  • Customization is limited; you must return the car in acceptable condition.

Often a plus

  • You own the asset and can sell or trade whenever it makes sense.
  • No mileage cap; drive as much as you want (fuel and maintenance still apply).
  • Modify or keep the car as long as you like.
  • Loan payoff builds equity over time (market value permitting).

Watch-outs

  • Higher monthly payment for the same sticker vs a typical lease.
  • Repairs after warranty are yours.
  • Depreciation risk if you sell in a soft market.
  • Longer loans mean more total interest — compare APR and term carefully.
Situation checklist
Apply Statement Tends to
Lease
Lease
Lease
Lease
Lease
Buy
Buy
Buy
Buy
Buy

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