Welcome,

NAVIGATION

	Introduction
	Step 1: What kind of car do you need?
	Step 2: How much can you afford?
	Step 3: Should you lease or buy your next car?
	Step 4: Have you considered all vehicles in that class?
	Step 5: Have you considered all of the costs of ownership?
	Step 6: Research options.
	Step 7: Schedule an appointment for a test drive.
	Step 8: How to test drive a car.
	Step 9: After the test drive.
	Step 10: Getting ready for the buying cycle.
	Checklist

PHOTOS

(Enlarge photo)
Decide whether you want to buy or lease your next car before you enter the selling room at the dealership. (Photo by Scott Jacobs)

Buying Articles

10 Steps to Buying a New Car
10 Steps to Buying a Used Car
10 Steps to Finding the Right Car for You
Confessions of a Car Salesman
How to Get a Used Car Bargain

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10 Steps to Finding the Right Car for You

Step 3: Should you lease or buy your next car?
By Philip Reed, Senior Consumer Advice Editor
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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. Go to Edmunds Finance Calculators to calculate your monthly auto loan payment vs. your monthly lease payment.

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More Buying Articles

10 Steps to Buying a New Car
The following steps will tell you how to locate, price and negotiate to buy the car you want.

10 Steps to Buying a Used Car
The following steps will tell you how to locate, price and negotiate to buy the used car you want.

10 Steps to Finding the Right Car for You
The following steps are devoted to helping you select, price, locate and test drive the vehicle that is best for you.

Confessions of a Car Salesman
What happens when a veteran automotive writer goes undercover as a car salesman? We sent our own Chandler Phillips to work at two Southern California dealerships and he came back to tell about it.

How to Get a Used Car Bargain Part One
In the second part of this series, we'll discuss Steps 3 and 4: how to locate your target cars and how to test drive and evaluate them.


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