It seems that the monthly payment for leasing a car is less than if I would buy a car. Is leasing better than buying?
Often the monthly payment for leasing a car is less than a loan for a car because you are only paying for the vehicle's depreciation, rent charges, and taxes for leased car. However, before making a decision to lease or purchase a vehicle, consider all the costs of leasing (beginning costs, excess miles/wear charges, disposition fees, etc.). You may find that with all the additional fees that come with leasing a vehicle, it is actually cheaper to purchase a car.
Brenda Procter, M.S., State Specialist &
Personal Financial Planning, University of Missouri-Extension
Last update: Wednesday, April 19, 2006