Rent vs Buy — Key Differences
| Factor | Lease | Buy |
|---|---|---|
| Monthly payment | Lower | Higher |
| Ownership | No equity | Build equity |
| Mileage limits | Yes (typically 10-15k/yr) | No limit |
| Long-term cost | Higher (always paying) | Lower (loan ends) |
| Flexibility | New car every 3 years | Keep as long as you want |
Frequently Asked Questions
Buying is almost always cheaper long-term because you build equity and eventually have no payment. Leasing makes sense if you value driving a new car every 2-3 years, want lower monthly payments, or use the vehicle for business (tax deductions). If you keep cars 8+ years, buying wins decisively.
Most leases allow 10,000-15,000 miles per year. Overages typically cost $0.15-$0.30 per mile. Driving 20,000 miles/year on a 10,000-mile lease over 3 years costs $3,000-$6,000 extra — a major hidden cost.