Leasing rents depreciation for a few years; buying owns the whole asset, depreciation and all, and eventually stops costing you anything monthly.
Side by side
| Lease | Buy | |
|---|---|---|
| Monthly payment | Lower | Higher |
| Ownership at end | None — return the car | You own it outright |
| Mileage limits | Yes, with overage fees | None |
| Long-term cost | Payments never stop | Payments stop; then just maintenance |
| Best for | New car every 2–3 years, low mileage | Keeping a car 7+ years |
Strengths of each
Lease — strengths
- Lower monthly payment
- Always under warranty
- No resale hassle
Buy — strengths
- No mileage limits
- Builds equity
- Cheaper over a long hold
Worked example
Leasing costs roughly $450/month indefinitely; buying the same car might be $550/month for 5 years, then $0 — buying wins decisively past year 6 or 7.
FAQ
Is leasing ever the cheaper choice?
Per-mile of use over a short horizon (2–3 years) with low mileage, yes — the math flips the longer you keep a car.
What’s the biggest hidden lease cost?
Mileage overage fees, often 15–30 cents per mile past the limit, plus wear-and-tear charges at turn-in.