- BUY - 

Buying Advantages:
  • You can modify your car as you please. 
  • Car buying is more economical over the long term. 
  • You can drive as much as you like. There's no excess mileage penalty. 
  • You have more flexibility since you can sell the car whenever you want. 

Buying Disadvantages:

  • It requires a higher down payment to avoid being "upside down" in the loan, meaning you owe more than the car is worth. 
  • Monthly payments are higher than lease payments. 
  • Once the warranty expires, you're responsible for repair costs. 
  • You face possible trade-in or selling hassles when you decide to get your next car. 
  • More of your ready cash is tied up in a car, which depreciates in value. 

Leasing Advantages:

  • Lower monthly payments with a low - or no - down payment. 
  • You can drive a better car for less money. 
  • Lower repair costs because you are always under the vehicle's included factory warranty. 
  • You can more easily transition to a new car every two or three years. 
  • There are no trade-in hassles at the end of the lease. 
  • You pay less sales tax. 

Leasing Disadvantages:

  • You don't own the car at the end of the lease (although there is always the option to buy). 
  • Your mileage is typically limited to 12,000 miles a year (you can purchase extra). 
  • Lease contracts can be confusing and filled with unfamiliar terminology. 
  • In the long run, leasing is more expensive than buying a car and keeping it for years. 
  • Excessive wear-and-tear charges can be a nasty surprise at the end of the lease. 
  • It's costly to terminate a lease early if your driving needs change.