| A lease requires little or no money up front and | | | | whenever you want |
| offers lower monthly payments. But when the | | | | Who should lease their new car: |
| lease ends you are left without a car and a need | | | | People who like to buy a new car every 2 to 3 |
| to replace it. | | | | years. Leasing will allow you to lower your |
| Buying a car is more expensive initially and the | | | | payment or to drive a more expensive car with a |
| monthly payments are higher. But at the end of | | | | monthly payment similar to a less-expensive car. |
| the loan, you will own a car you can still drive or | | | | Who should not lease their new car: |
| sell. | | | | People who like to keep their cars for a long time, |
| Other key factors that differentiate leasing and | | | | high-mileage drivers, and those who don't want to |
| buying include: | | | | be forced into a decision about buying another car |
| Advantages of Leasing | | | | at the end of the lease period. |
| You can drive a better car for less money | | | | Tax advantages of leasing a car |
| You can drive a new car every few years | | | | If you use your car for business, you may be |
| No trade-in hassles at the end of the lease | | | | able to write the entire amount of your lease |
| Advantages of Buying | | | | payment off your taxes (as opposed to writing |
| When interest rates are low, it makes more | | | | off just the interest on a new-car loan). Tax |
| financial sense to own a car rather than lease it | | | | regulations are constantly changing, so it's best to |
| No mileage penalty | | | | consult your accountant or tax professional about |
| Increased flexibility - you can sell the car | | | | the tax advantages of leasing a car. |