Pros of buying
The primary benefit of buying a car is ownership. As you pay off a car loan, you build equity. Once it’s paid, you have an asset and a period of time without car payments, which can be financially liberating compared to the continuous payments of leasing.
Ability to sell or trade in
When you own a car, you can trade it in or sell it if your needs change or you want a different vehicle for another reason. If you have payments remaining on the loan, you can use the money from the sale to pay the loan off, and put the remainder toward a new car.
Less restrictions on use
You can drive a car you own as much as you want, with no restrictions on mileage. Additionally, while dings, scrapes, and wear and tear may lower the value of the car at trade-in, you won’t pay penalties for them as you would with a lease.
Cons of buying
Higher monthly payments
In the short term, buying is less affordable than leasing because monthly loan payments are usually higher than lease payments.