Compared with the purchase of a new car, a car lease is a lot cheaper. You won’t have to pay the same amount each month, unlike car financing. The only downside is that you don’t own the vehicle. Once the lease is over, you have to return the car. You can continue the lease or buy the vehicle. How do you decide to lease a car?
To determine what’s best for you, you need to sit with a pen and paper and do the math. Start with your old car, write down the purchase price and average maintenance you put it, the tax and registration fees, and the interest you paid over the year (if you had a loan). That’s your total cost of ownership.