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The answer is - it depends. It's not possible to simply say that one is always better than the other because the answer depends on the specifics of each individual situation.

Leases and purchase loans are simply two different methods of automobile financing - leasing is not renting as many people seem to think. Leasing finances the use of a vehicle; buying with a loan finances the purchase of a vehicle. Each has its own benefits and drawbacks.

When making a 'lease or buy' decision you must look not only at financial comparisons but also at your own personal priorities - what's important to you.

Is having a new vehicle every two or three years with no major repair risks more important than long-term cost? Or are long term cost savings more important than lower monthly payments? Is having some ownership in your vehicle more important than low up-front costs and no down payment? Is it important to you to pay off your vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years?

So we find out that making a lease-or-buy decision is not quite cut and dry. There are trade-offs, pluses and minuses, pros and cons to consider.

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