Lease vs Buy a Car | Quick Decision Guide

Overview

Leasing and buying both have advantages. Your choice depends on driving habits, budget, and long-term plans. This guide helps you choose the most cost-effective option.

Leasing — When It Works Best

Best for drivers who:

• Prefer lower monthly payments
• Drive <12,000 miles/year
• Want a new car every 2–3 years
• Prefer minimal maintenance

Buying — When It’s Better

Best for drivers who:

• Want long-term savings
• Drive frequently
• Value ownership and resale
• Prefer no mileage restrictions

Real Cost Comparison

Lease: Lower payments, no equity, potential extra fees
Buy: Higher monthly payments, ownership after term, long-term savings

Gas vs Electric Considerations

Leasing may offer EV incentives, but buying may give more long-term fuel and maintenance savings.

FAQs

Q1: Can I exit a lease early?

Yes, but early termination fees may apply.

Q2: Do leases have mileage limits?

Yes, typically 10,000–15,000 miles/year.

Q3: Is buying more expensive upfront?

Yes, buying usually requires a down payment.

Q4: Are lease payments always lower?

Yes, lease payments are usually lower because you pay for depreciation, not full ownership.

Tools and Resources

Compare Lease vs Buy Payments

See which option fits your budget.
👉 Car Loan Calculator

Check Borrowing Capacity for Buying

Know your safe borrowing limit.
👉 Borrowing Capacity Tool

Compare Gas vs Electric Owning Costs

Perfect if deciding between EV or petrol.
👉 Gas vs Electric Comparison Tool