Making Cents: Should I buy or lease a car?

Financial expert Kathryn McCall breaks down the lease-versus-buy decision by focusing on cash flow, total cost, and flexibility. On leasing, she highlights the appeal of needing less money upfront and the ability to walk away at the end of the term, which can be useful if buyers want to switch to newer technology—particularly as electric vehicles evolve. She also warns that financing and long-term ownership costs, including depreciation and maintenance, can change the economics. For buying, McCall typically prefers purchasing without a monthly payment, saying financing can add roughly 15% to 40% to the car’s total cost. Her top recommendation: buy a gently used vehicle with under 10,000 miles, saving about 20% to 20% versus new.