Lease or Buy in 2025? Let's Get Real

There’s no shortage of opinions when it comes to whether you should lease or buy your next car. After fifteen years reporting from Detroit, I’ve seen the pendulum swing with fuel prices, tech upgrades, and those ever-present monthly payment calculators. But as we roll into 2025, the landscape feels familiar—just with a few more charging stations and touchscreens.

The Monthly Payment Dance

If you’re eyeing a new Toyota Camry or a Ford Escape, leasing’s big appeal is that lower monthly payment. In most cases, leases let you drive a more expensive car for less money each month compared to buying. You’re essentially paying for the car’s depreciation over two or three years, not the whole enchilada. For folks who like that fresh-car smell (and avoiding the hassle of haggling over trade-in values), leasing is like a subscription service for your driveway.

Long-Term Commitment Issues

But let’s be honest—leasing isn’t for commitment-phobes. Mileage limits are real, usually between 10,000 and 15,000 miles per year. Go over, and you’ll pay up—sometimes 25 cents a mile or more. And don’t forget about wear-and-tear charges. That mysterious scrape on your bumper? The lease inspector won’t miss it.

Ownership: It’s Yours (For Better or Worse)

On the flip side, buying (with cash or loan) means you own the car outright once those payments stop. You can rack up miles on cross-country road trips without sweating penalties. Plus, the car becomes an asset you can sell or trade whenever you want. There’s a certain satisfaction in knowing your ride is truly yours—even if it means enduring those last few years with worn seat bolsters and a suspicious rattle somewhere in the dash.

Resale Value: The Great Unknown

The used market has been wild lately—high demand, unpredictable pricing. If you buy, you gamble on resale value. Some models—think Honda CR-Vs and Toyota Tacomas—hold their value remarkably well, while others depreciate faster than day-old doughnuts at a bakery. With a lease, depreciation isn’t your problem; just hand over the keys at the end.

Tech Moves Fast (Sometimes Too Fast)

This one hits home: Cars are evolving at breakneck speed. Leasing lets you upgrade every few years without worrying about obsolete tech (or that infotainment system that suddenly feels like using a rotary phone). But if you’re happy driving a car longer and aren’t fussed about having the latest screen size or plug-in hybrid system, buying could make more sense.

The Bottom Line from Detroit

If you crave newness and predictability—and don’t mind mileage caps—leasing suits you fine in 2025. For folks who drive more than average or want to build equity in their vehicle, buying still wins out. Personally? I’ve bought my last two cars; there’s something reassuring about long-term ownership—even if it means occasionally cursing at a stubborn check engine light on a cold Michigan morning.