A lease requires little or no money up front and offers lower monthly payments. But when the lease ends you are left without a car and a need to replace it.

Buying a car is more expensive initially and the monthly payments are higher. But at the end of the loan, you will own a car you can still drive or sell.

Other key factors that differentiate leasing and buying include:

Advantages of Leasing -

• You can drive a better car for less money.
• You can drive a new car every few years.
• No trade-in hassles at the end of the lease

Advantages of Buying -

• When interest rates are low, it makes more financial sense to own a car rather than lease it.
• No mileage penalty.
• Increased flexibility — you can sell the car whenever you want.
• If you are still unsure whether to lease or buy, try letting the numbers help you make the right decision.