Lease vs Loan: Which Costs Less?

A lease and a loan solve different problems. A loan helps you buy the car over time. A lease lets you use the car for a set period under contract limits.

Lease considerations

Leases may have lower monthly payments, but mileage limits, wear charges, acquisition fees, disposition fees, and lack of ownership matter. They can work for drivers who want newer vehicles and predictable terms.

Loan considerations

Financing may cost more monthly, but you build ownership and can keep the car after payoff. Long-term ownership can be cheaper if the car remains reliable.

Compare total cost

Look beyond the payment. Compare cash due at signing, insurance, maintenance, expected mileage, end-of-term costs, and the value of owning the vehicle.