You may be thinking about whether you should buy or lease your next vehicle, and you may be wondering what the difference is. Well, there are pros and cons of both buying and leasing and you should definitely consider them all before making a final decision.

The pros to leasing a vehicle are: You may have lower monthly payments, your maintenance costs may be lower, you don't need to worry about the amount of miles you put on the car, and you can get a new car every couple of years.

The cons of leasing a vehicle are: You are making payments on something that you will never own.

The pros of buying a vehicle are: You are actually making monthly payments so that once the full amount of the loan is paid, the vehicle is yours. Having the loan and paying on time makes your credit better. You can add the vehicle to your list of assets.

The cons of buying a vehicle are: Vehicles depreciate quickly, so by the time you pay off your loan, you most likely paid more than what the vehicle is actually worth. Also, you are responsible for all costs of that vehicle, including maintenance, taxes, etc.

You should now be able to make an informed decision on what will suit you best, either buying or leasing.

Learn more about this author, Elisa Weese.
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