EP171: Should I Lease a Car or Get an Auto Loan?

Money Peach

When it comes time to drive off a new car, you have three basic options:

1. You can pay cash
2. You can get an auto loan
3. You can drive off with a lease

But with the average price of a new car at almost $41,000, most drivers today are driving off the lot with either an auto loan or a lease.

❓ But which is better - an car lease or an auto loan?

What are the costs that go with each?

And how do you know if you're making the best financial decision when it comes to driving your next car?

Is there something we are missing when comparing the two?

Today on the show, I will compare the auto loan and car lease, so you can decide which is the best way to drive off the lot in a new car.

But, to start off, the simplest way to separate an auto loan and a lease is by understanding that an auto lease allows you to DRIVE the new car, whereas an auto loan allows you to DRIVE and BUY the car.

❗ ❗ Of course there’s a lot more to it and to tell the whole story let’s jump right in.

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Today's show was brought to you by OneAZ Credit Union — my very own credit union I have been proud a member of since 2011.

If you live in Arizona and are looking for a large credit union with a local, customer-focused feel for your personal or business banking needs, look no further than OneAZ Credit Union.

All the show notes, links and anything I mentioned can be found at https://www.moneypeach.com/session171