Is It Better to Buy or Lease a Car

On a $35,000 car with $5,000 down, a 6% loan over 5 years and a $400 lease with $3,000 due at signing, buying costs about $21,300 net over 5 years after resale, while leasing costs about $27,000 over the same period. Leasing looks cheaper month to month but usually costs more if you keep the car long, and charges for miles over the limit. Buying wins for high-mileage drivers who keep vehicles many years; leasing suits those who want a new car every few years and predictable maintenance. New-car loan rates average about 6.4% (Experian Q1 2026) but used-car loans run near 11.4%, so a used-vehicle purchase needs a larger rate buffer. Run your own numbers, since incentives and residual values swing the result.