Is It Better to Lease or Buy a Car? (in 2023)

Although the choice between leasing or buying a car has plenty of financial implications, money isn’t the only factor that goes into this decision. In fact, this choice is often based on a person’s tolerance for risk, and how often they prefer to switch cars. 

If you want to own a car outright — and to enjoy some time without a dreaded car payment — buying a car is the obvious choice. If you don’t care about car ownership, leasing a car is more prevalent than some drivers realize. 

According to Experian’s Q4 2022 State of the Auto Finance Market study, 26.45% of all new vehicles were leased last year with Hondas and Toyotas being the most popular car makers. While leasing is still a popular option the percentage has dropped significantly – over 17% since it’s high of the pandemic. Leasing a car can also mean a more affordable monthly payment, depending on your scenario.

Before deciding whether to purchase or lease a car, think about your finances and your lifestyle. This guide can help you decide what to consider before buying or leasing a car, along with the pros and cons of either option.