Pros and cons of leasing vs. buying a car

Leasing a car requires less money upfront and has lower payments, but there are typically mileage restrictions and additional costs.

Buying can mean more expensive monthly payments and long-term maintenance costs, but you have greater control over its use and lower costs in the long run.

With leasing, you do not own the vehicle at the end of the lease term. Financing is more expensive in the short term, but you will own the vehicle once you've finished paying.

When you lease a car, you pay to use it and return it once the lease term is up. This often means lower monthly payments, but leasing can be more expensive than buying a car since you won't be able to sell your car or use it as a trade-in for your next purchase. Buying a car means owning it outright — once you've repaid your loan — and can drive it for years after your monthly payments finish.

If you're deciding between the two, balance your desire for top-of-the-line tech and a reasonable monthly payment against the long-term benefits of owning a car.

Leasing and buying are both valid ways to get your hands on a new vehicle, but buying offers fewer restrictions than leasing on how much you can drive and what you can do with the vehicle. Plus, you'll own the car at the end of the loan. Leasing is a less expensive option, month-to-month, especially if you want to drive a luxury car. You won't own the car at the end of the lease period, and depending on the terms of your contract, you may also need to pay additional fees.

Your credit score affects your loan terms and how much you spend overall. In the second quarter of 2026, Experian's State of the Auto Finance Market report shows that:

The average lease payment for subprime borrowers (scores between 501 and 600) was $619. Super-prime borrowers (scores between 781 and 850) saw a similar average payment of $622.

New car loans had a similar difference, with subprime borrowers paying $805 per month compared to the $741 paid by super prime borrowers.

The average monthly payment for used auto loans was $567 for subprime borrowers and $534 for super-prime borrowers.

The majority of loans and leases go to borrowers with credit scores of 600 or higher.

The decision to lease or buy also depends on several other factors, including the miles you expect to drive annually, the amount of money you're willing to spend and the vehicle's purpose. Use a calculator to compare leases and loans to decide which option is right for your budget.