Should I buy or lease a car?

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I am starting my professional career in less than a year. My car MUST be replaced as soon as possible. My dad & I disagree about whether I should buy or lease.

I will be making $50k in Northern OH. I have about $40k in student loans. I am planning to buy/lease a Toyota Prius.

Lease pros:

- I want to work overseas eventually & would leave about when the lease ends - I wouldn't have to make payments on a car I wouldn't be driving.

- I could get a car immediately instead of saving a downpayment (a big + since I need a reliable car!)

- I will be making bonuses and getting raises, so the payoff would be more affordable than a higher payment up front.

- The gas mileage is low enough & the travel rate is high enough that going over the mileage for work wouldn't set me back.

Buying pros:

- No worries about mileage.

- Usually cheaper in the long run.

- Might be easier to do with my bad credit rating.

... That's all I've got (this is my dad's vote, so you convince me!)

Should I buy or lease a car?

Let me preface my answer by saying this: I sell cars for a living. For your specific situation, your best bet is to lease. Leasing is not evil. Actually, in most cases, leasing is the best option.

First, for you, you already said by the time the lease would terminate, you will be going overseas. This will not keep you obligated for another 2-3 years on a purchase.

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Should I buy or lease a car?

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