If you’re wondering whether it’s better to lease or buy your next car, you’re not alone. It’s one of the most common questions I get — and for good reason. The choice you make could save (or cost) you thousands of dollars over the life of the vehicle.
At RH Auto Brokers, we walk clients through this decision every day. In this blog, I’m going to break down the pros and cons of leasing vs. buying, walk you through key questions to ask, and help you make the right move for your lifestyle, mileage, and budget.
When you lease a car, you’re paying for the use of the vehicle over a set time period — usually 2 to 4 years. You’ll have lower payments, but you don’t own the car.
When you buy a car, whether through a loan or with cash, you’re working toward full ownership — which gives you long-term flexibility and potential equity.
Lower monthly payments than buying the same car.
Factory warranty coverage the entire time you drive it.
No major repair costs (if you stay within warranty).
Drive new cars more often, typically every 2–3 years.
Option to buy the car at the end of the lease.
Mileage limits (usually 10k–15k/year unless structured differently).
Possible fees for wear and tear beyond normal use.
No ownership or equity at the end unless you buy it.
Expensive to get out early without penalties or fees.
You own the car and build equity with every payment.
No mileage restrictions — drive as much as you want.
Freedom to modify, trade, or sell the vehicle anytime.
More cost-effective long-term if you plan to keep it 6–10+ years.
Higher monthly payments compared to leasing.
Out-of-warranty repairs are your responsibility.
Depreciation hits hardest early on, often outpacing your loan payoff.
Larger upfront costs, especially if paying cash or financing taxes and fees.
Here are the key questions I ask every client when we’re deciding between leasing or buying:
If you’re regularly over 12,000–15,000 miles a year, leasing might cost more due to overage fees. You can estimate your average mileage by checking your service history or registration documents from when you bought your current car.
At RH Auto Brokers, we follow the 8-Year Rule. If you keep cars longer than 8 years, buying is almost always more cost-effective. Leasing with the intention to buy later usually results in more interest and higher total payments.
If you want to avoid long-term maintenance and enjoy the latest tech and safety features, leasing could be a great option for your lifestyle.
Sometimes leasing is simply the only way to get into a reliable, newer vehicle at a monthly payment that fits your finances. In those cases, leasing should absolutely be on the table.
You may have heard that leasing is better for tax write-offs — and sometimes it is. But I’ve worked with business owners who’ve bought cars and still got great tax benefits. The truth? Talk to your accountant. Depending on your usage, you may write off mileage or the full payment, regardless of whether you lease or buy.
We had a client looking to lease a Kia Telluride at 20,000 miles per year. The payments were nearly $900/month. After some creative research, we found him a Mazda CX-90 Plug-In Hybrid with big rebates and a lease payment of around $650/month — for the same mileage allowance.
Did he love the look of the Mazda as much as the Telluride? Not really. But he made a smart business decision that saved him $300/month — over $10,000 across the lease term.
There’s no one-size-fits-all answer. Whether leasing or buying is better for you depends on your:
Driving habits
Budget
Long-term plans
Vehicle preferences
Business or tax needs
And sometimes, the car you want just doesn’t lease well due to poor residual value or inflated lease rates. That’s where we come in.
At RH Auto Brokers, we help you compare lease vs. buy options based on your goals, not dealership incentives. If you want guidance without the pressure, we’re here to help.
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