isworthit

Is Leasing a Car (vs Buying) Worth It?

2024 data · Last updated 2026-07-05

The verdict

It depends on how you use a car — leasing offers lower payments and a always-newer car with warranty coverage, but you never build equity and face mileage caps. Buying costs more monthly but is cheaper long-term once the loan is paid off. High-mileage drivers and long-term keepers should buy.

The trade-off

Typical cost
Lease: lower monthly payment, but perpetual payments & no equity; mileage caps typically 10,000 / 12,000 / 15,000 mi/yr (12k most common) + overage fees of $0.15-$0.30/mi ($0.35+ on luxury brands) + wear-and-tear fees
Typical saving / return
Buying builds equity and is cheaper long-term if you keep the car past the loan (~6+ years); leasing suits those wanting a new car every 2-3 yr or a business write-off
Breakeven
Buying wins over ~6+ yr ownership; leasing competitive only for short holding periods / business tax deductions

What changes the answer

  • how long you keep a car
  • annual mileage vs the cap
  • per-mile overage fee ($0.15-$0.30)
  • business tax deduction
  • down payment & money factor

Pros & cons

Pros

  • Lower monthly payments than financing a purchase
  • Always driving a newer car under warranty
  • No resale hassle at the end
  • Potential tax advantages for business use
  • Predictable costs during the lease term

Cons

  • You never build equity — perpetual payments
  • Mileage caps with costly overage fees
  • Wear-and-tear charges at return
  • Expensive to break early
  • Buying is cheaper over the long run

Who it's for

✓ A good fit if…

  • Low-mileage drivers who want a new car often
  • Business users who can deduct lease costs
  • People who value predictable, lower payments

✗ Probably not if…

  • High-mileage drivers
  • People who keep cars for many years
  • Anyone optimizing for lowest lifetime cost

What people are actually asking

Real Reddit discussions on whether Leasing a Car (vs Buying) is worth it — titles link to the original threads.

FAQ

Is it better to lease or buy a car?

Leasing means lower payments and a newer car, but no equity and mileage limits; buying costs more monthly but is cheaper long-term once paid off. Low-mileage drivers who want a new car often may prefer leasing; high-mileage drivers and long-term keepers should buy.

Sources