When to Buy
Buying makes more financial sense in most situations, especially long-term. Here is when it clearly wins.
You drive more than 12,000 miles per year
Mileage overage at $0.15-0.30/mile turns a cheap lease into an expensive one fast. At 18,000 miles/year and a 12,000-mile limit, you owe $1,200-1,800 per year. A car you own has no mileage limit.
You plan to keep the car 5+ years
After the loan is paid off, your cost drops to insurance and maintenance only. A leaser keeps paying every month forever. The longer you own a paid-off car, the better the math gets.
You want equity
A car you own has value you can sell, trade in, or keep. Even a 7-year-old car with 100,000 miles might be worth $8,000-12,000. A returned lease leaves nothing in your pocket.
You want to modify the car
Leases prohibit modifications. You cannot add a lift kit, aftermarket wheels, tint, or a tow hitch without getting charged at turn-in. If you want a vehicle that is yours to customize, buy.
You have a non-standard use case
Off-road driving, towing regularly, hauling tools, working in construction - these create wear and mileage that make leases prohibitive. Buy what you will actually use the way you want to use it.
You hate the uncertainty of turn-in
Lease turn-in involves an inspection and potential charges you did not plan for. Buying means you decide what condition to keep the car in and there is no inspection anxiety at the end.