When you're ready to get a new car, one of the first choices you need to make is whether you want to finance your new car purchase or take out a lease. Here are some of the pros and cons of each choice. 
 
LEASING
For drivers who love driving a car equipped with the latest technology and safety features, leasing is a great way to get a brand new car every few years. Another great benefit to leasing is the fact that monthly payments are usually lower for a lease than they would be for the same car with a loan. Lease contracts also usually require less money up front, when compared to a new car down payment.

Some of the downsides to leasing include mileage restrictions, you usually can't make any modifications to the car, and you don't gain any equity with your monthly payments.
BUYING
The majority of new car shoppers choose to finance their new car purchase through an auto loan. For drivers who prefer to keep their cars as long as possible, buying is the better choice. You will make monthly loan payments until the loan is paid in full. You will also gain equity, which could be used towards another car purchase in the future if you trade in your vehicle. You also have the freedom to drive as much as you want and make changes to the car.

However, buying a new car usually requires a sizeable down payment. Experts recommend around 20% of the total car purchase. Monthly loan payments can also be more expensive than lease payments.