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July 25, 2018

Buying, Selling, or Leasing a Vehicle

Auto Leasing

Whether it is better to lease or buy a car depends on many factors.

A car lease means lower monthly payments. After all, your installment payment depends on the purchase price minus the car's estimated value at the end of the lease term. Thus, your installment payment does not depend on the full value of the car. Leasing usually avoids a down payment and sales tax. There also may be tax advantages if you lease mainly for business use.

On the other hand, a leased car does not gather any equity (cash value). Buying a car on credit does. Finally, when your lease is up, you must return the car.

Click on the links below for more information on this particular subject area. Main subject areas for the "Buying, Selling, or Leasing a Vehicle" section are linked at the bottom of these pages.