Leasing Vs. Buying A Car – Pros And Cons


Are you making the leasing versus buying decision? Making financial decisions largely depend on the money goals we set  for ourselves.

If you want to save X% of your income per year, you need to make decisions that align  with that. Here are the pros and cons of leasing vs. buying a car.

Leasing is tempting to many people, mainly because of the lower monthly payment.

When you’re leasing a car, there is little to no upfront costs. Most lease contracts don’t have a down payment if they do the amount is very low.

When you’re leasing a car and there are damages to the car, you need to pay for them. Whether the damage is inside the car or on the outside, is irrelevant.

When you’re encountering a major life event and you’re not able to pay for the car anymore, the lease contract is still in place.

Like everything in personal finance, there are pros and cons. Think about what you value and your current financial situation before you’re making  a decision.