Leasing a car and buying a car will both put you in the driver’s seat, but with different financial implications. Leasing only makes sense if two things are true for you: You love having a new car every couple of years. However, once the contract … This can happen if the car is in an accident, for example. Let’s keep this simple. Leasing a new car is basically a rental agreement where payments are made to borrow the car for a specific period of time. We see the Tesla Model Y $499 lease as a good deal, but perhaps it's not. That’s how you get the most value out of a car. Buying vs Leasing Your Next Car – Pros and Cons. Leasing Vs. Buying a Car: How You Make the Right Choice. Buy your car, keep it for 7-10 years, then buy another. By MoneyWise Dec. 22, 2020. Buying a car means a loan for a specific amount which you will have to pay back even if the value of the car goes below the amount of the loan. Topics: Retirement Spending. With a lease, buyers make a monthly payment to drive a new car for a set term. Don’t do it. Car leasing vs. buying is worth a debate. Lease Payments . We adhere to strict standards of editorial integrity to help you make decisions with confidence. carroteater / Shutterstock. The best choice is subjective. Lease payments are usually lower than similar-term finance payments because you’re only paying for the portion of the vehicle’s value used during the lease term (and any associated lease charges). As car prices rise (now averaging over $38,000) and buyers start to demand the latest safety features that are available only on newer cars, leasing a vehicle has become a mainstream alternative to buying. Without further ado, here’s our rundown for the pros and cons of buying a car vs. leasing a car. Start by understanding the pros and cons of each option. Lease a Vehicle - Retain your option to return or buy. That means prices are being cut and incentive deals are being offered for purchasing or leasing many cars. The peak car-buying season is drawing to a close. Buying vs. Leasing. With car leasing, the residual value at the end of the lease can lower the lease cost, and if you get a closed lease you can walk away without penalty. Leasing is almost always a terrible idea. Weigh the pros and cons of leasing vs. buying a car to make the right choice when you finance your next vehicle. While leasing a car has many upsides, there are pros and cons to both buying and leasing that may make sense to you depending on your finances, lifestyle, and needs. Loan Payments vs. Leasing a car, whether it's through an online car buying site or at a local dealership, is similar to renting an apartment. By Bob Carlson. Last update on: Mar 16 2020. Why it’s probably better to lease a car than buy one right now Published: June 24, 2020 at 5:02 a.m. Red Carpet Lease provides unique benefits and features: