Deciding whether to buy or lease your next car can be a tough decision. And with today’s higher car prices – the average price paid for a new car is nearly $50,000 – and higher interest rates , you’re looking at bigger monthly payments, no matter which you choose.
Monthly payments are usually lower with a lease because you’re not paying for the full value of the car. That means you may be able to drive a more expensive vehicle than you’d normally be able to afford. While all of that might sound appealing, there’s one hard fact about leasing: At the end of the lease, you’ll have to return the car because you don’t own it.
It’s difficult to make a fair head-to-head comparison, but in general, two back-to-back three-year leases will always cost more compared with buying and owning a car over that same period. That’s because you’ll own an asset – the vehicle – after that period.Don’t rely on a dealer for the best loan rate. Instead, check if your bank or local credit unions offer lower rates