Lease vs Buy
Lease vs Buy a Car — Which Costs Less Long-Term?
Leasing minimizes monthly payment. Buying minimizes lifetime cost. The right answer depends on how long you keep cars and your annual mileage.
Verdict
Buy if you keep cars 7+ years and drive <15K miles/year. Lease only if you must have a new vehicle every 3 years for business reasons, or if you genuinely can't afford the buy payment. The "lease forever" path costs about $300K more over 30 years than buy-and-hold.
Side-by-side comparison
Who should pick Lease
Business owners writing off 100% of business use. People who want a new car every 3 years and don’t want to deal with selling. Anyone whose employer covers leased vehicles.
Who should pick Buy
Anyone who keeps a car 5+ years. Drivers over 15K miles/year. Anyone who wants to be debt-free in 5-7 years. Buy-and-hold investors who hate recurring payments.
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Disclaimer. Comparison numbers depend on your tax bracket, state, and time horizon. Educational only — not personalized financial advice. See our Financial Disclaimer.