Is leasing or financing a car better?

Whether leasing or financing a car is better depends entirely on your driving habits, financial priorities, and how long you plan to keep the vehicle.

The Short Verdict

• Choose Financing (Buying) if you want to own your vehicle long-term, drive more than 15,000 miles a year, customize your car, and eventually live without a monthly car payment. It is the more cost-effective financial move over the long run.
• Choose Leasing if you prefer lower monthly payments, want to drive a new car with the latest technology every 2 to 3 years, and prefer to avoid the hassle of selling a used car or dealing with out-of-warranty repairs.

Here is a detailed breakdown of how they compare across key categories: