Should you buy or lease that car? Simple. It depends on your personal needs – cash flow, credit status, mileage-per-year needs, etc. Most car buyers, 4 out of 5, finance or pay cash instead of leasing. That's a significant difference when you consider how many short-term benefits leasing provides. Of course, like any deal in the financial world, where there is a benefit, there is a drawback. That's why it's important to understand every angle in financing and leasing. So you can move in a straight line to the deal that's right for you. For serious help, check out our Auto Loan Calculator to estimate the best, most affordable deals.

So, why buy?
Here are a few good reasons:

• Steady repayment can build equity.
• You avoid the repetitive cycle of renegotiating short term leases.
• You can bask in the comfort of driving a car – your car – without the restrictions of a short term lease.
• There is an end to your monthly car payments – leasing offers no such relief.
• Financing a car means never having to worry about mileage limits.
• Future car owners can also worry less about wear-and-tear.
• At the dealership, shoppers looking to finance will enjoy large cash rebates and low-interest financing.

• Lessees don't have to worry about owning a depreciating asset.
• Drivers don't have to deal with hefty maintenance bills.
• With a car in good condition, under the mileage limit, lessees can simply return the car.
• In a time of high interest rates, a lease may offer lower monthly payments, especially with good credit.
• Consumers can enjoy purchasing flexibility – after a lease term, pick out another car. It's like a three- or four-year test drive.
• Lessees will always have the latest safety and technology innovations on the road.
• Lease plans are rarely 60-month terms – this is common with finance periods.
• Many consumers can drive away with the latest model, even a luxury car, with less cash upfront.
• If you're self-employed, you can write off your leasing payment as a business expense.

So which is right for you? Your answer should begin something like this: "All things considered..." Because when you understand the upside, downside, inside and outside of a deal, you'll end up reaping the benefits and avoiding the disadvantages in the long run. Whatever the terms of the deal are.

If you're ready for the bottom line, check out our Auto Loan Calculator where you can enter different deal scenarios, and estimate bottom line prices.