Deciding between financing a vehicle through an auto loan or opting for a lease can be confusing, especially if you’re unfamiliar with how each option works. This article breaks down the fundamental differences, including ownership, monthly payments, mileage limits, and long-term costs. We discuss the benefits of building equity with an auto loan versus the flexibility and lower upfront costs of leasing. You’ll also find helpful tips on who should consider leasing and who might be better off purchasing a car with a loan. By the end, you’ll have a clear understanding of which path suits your financial goals and driving habits best.