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Lease or buy: Which is right for you?

We can help you decide whether it's smarter to buy or lease your next car or truck.

When you buy, you pay the car's entire price, interest on any loan you take out to finance the purchase, and sales tax on the entire price.

When you lease, you only pay for the value the car loses while you drive it, interest on the loan the leasing company took out to buy the car, and sales tax on part of the purchase price.

As a result, leasing is often cheaper if you're going to keep the car for just a couple of years, while buying saves money if you're willing to drive the same car five or six years.

Start with our 7 benefits to leasing. You could enjoy everything from lower monthly payments to a spiffier ride and potential tax breaks.

If those advantages sound like they could help, move on to our 5 questions to ask before leasing. They'll help you make a sound financial choice that fits your personality and lifestyle.

If you're ready to lease, take a look at our strategy for finding the best deal.

Have a question about cars or your finances? Ask us at editors@interest.com

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11/21/2009 6:38:08 AM
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