Should You Lease Your Next Car?
On February 25, 2026 By newsroom Topic: Automotive
1. Leasing vs. Buying Overview:
- Leasing: Lower monthly payments, predictable costs, and access to new cars every few years. Perfect for those who value convenience and the latest features.
- Buying: Higher upfront or monthly costs but better long-term value. Ideal for those planning to keep the car for a long time or who drive a lot.
2. Current Market Landscape:
- New car prices and interest rates are historically high.
- Average payments (end of 2023):
- Lease: $606/month.
- Loan: $738/month.
- Inventory increases may lead to better deals soon.
- EV Leasing Bonus: Federal tax credits of up to $7,500 can make leasing EVs financially attractive.
3. When You Should Lease:
- Predictable Costs: Lease terms often match warranties, covering repairs and maintenance.
- Luxury Vehicles: Discounts often bring luxury car lease payments closer to mid-range car financing.
- Latest Safety Features: Leases let you frequently upgrade to cars with the newest safety and tech advancements.
4. When You Should Buy:
- High Mileage Drivers: Most leases cap annual mileage at 10,000-15,000 miles, with penalties for overages.
- Long-Term Plans: Owning means no payments after the car is paid off, and you retain resale value.
- Changing Needs: Buying is better if you foresee needing a different car soon (e.g., growing family).
5. Why Lease an EV?
- Tax Incentives: Federal credits apply to EV leases without the strict requirements tied to purchases.
- Avoid Depreciation Risks: EV prices are volatile; leasing transfers resale value uncertainty to the lessor.
- Tech Evolution: Rapid advances in EV technology ensure leased EVs remain up-to-date with features like fast charging.
6. Vehicles Better Suited for Leasing:
- Cars with great road-test results and owner satisfaction but poor reliability are better leased than purchased.
- Leasing ensures coverage under warranty and avoids the hassle of long-term ownership of unreliable models.
Pro Tip:
- If you prefer leasing, watch for deals on EVs or luxury vehicles, and prioritize those with robust warranties. For buying, focus on long-term value and reliability.
