Leasing vs. buying: a decision guide

In short: Leasing means using a vehicle or device for monthly payments without becoming the owner, while buying provides immediate ownership. Both models have different advantages and disadvantages depending on usage behaviour.

In more detail: At the end of a lease term, the object usually belongs to the lessor, not the user.

In detail

• Monthly burden: Lease payments are often lower than loan instalments, since only depreciation is financed.
• Mileage limit: Many vehicle leases limit annual mileage.
• Flexibility: A new model can simply be leased after the contract ends, without the hassle of selling.
• No asset building: Unlike buying, no ownership is created that can later be sold.
• Additional costs: Damage beyond normal wear and tear often has to be paid for on return.
• Business use: For the self-employed, leasing can be tax-attractive (abschreibung-(afa)-und-leasing).
• Decision criterion: Those who want to keep the object long-term often come out cheaper with buying.