Other than a home, a vehicle is the largest purchase you are likely to make in your lifetime. You will probably spend significant time researching the right car for your unique needs. First, you have to decide whether to buy your vehicle new or used. Then, if you decide that a brand-new vehicle is right for you, the next question is whether to buy or lease it.
When you buy a car, it is yours. When you lease a car, you are paying to drive the dealership's car. Although lease payments are lower than loan payments, you have no equity after the vehicle lease has ended. Leasing, however, allows you to always be driving a brand-new car, which can be a key selling point for some consumers. You can drive your leased vehicle for two or three years, then exchange it for the newest model. Depending on your budget, needs, and wants, a lease may be the best option for you.