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This is a question that every auto consumer has to face. There is no particular answer for every one. It depends upon many factors such as your financial standing and personal considerations. Each option has it’s own benefits and disadvantages. Each person makes a choice by looking at certain factors which may be applicable in the person’s life or which suit him/her better than the other one.

Leasing : Most impotant factor in making a decision depends on your finances. You need to ask yourself how stable is your job? How is your financial situation? etc. When you lease a car, your monthly payments will be significantly lower than when you buy a car since when you lease ,you only make payment for the portion of the car which you will be using for that period of time.

Let’s say if you want luxury car but cannot afford the down payment, than you will be a good candidate for leasing the car. Benefits of leasing are that you don’t have to pay down payment upfront and monthly payments are significantly lower. However there are drawbacks in leasing as well . If you terminate your lease early , there may be stiff penalties and that can ruin your credit. You need to make sure that you can make the monthly payments for the car for the duration before you commit to leasing it. Leasing comes with limited mileage. You need to estimate how many miles do you drive each year. With leasing the maximum mileage allowed per year is 12 – 15 thousand miles. Another thing is that your car needs to be in good condition at the end of the lease other wise you can end up paying hefty penalties.

Buying: However, if you are interested in buying a car, you can pay cash for the down payment , taxes or get a loan and pay the interest rate  determined by your loan company. You know you will be owner of the car and can enjoy the feeling of free driving once your car gets paid off.

Your decision to buy or lease also depends upon other factors such as if you would like something new and exciting or are you the person who will stay happy with one car? If you want to drive a car for more than five years, buy a car but before that negotiate carefully. If you want to change a car every two to three years , than leasing is the best option for you. With buying ,you don’t have to worry about how many miles you can drive per year and so if you drive more than 12- 15 thousand miles per year, than buying is a good option.