Lease or Buy: Making the Best Automotive Decision

Car Leasing in 2025: What Experts from Edmunds, KBB, and Consumer Reports Say

Leasing a car has long been a popular alternative to buying, especially for those who enjoy driving a new vehicle every few years. But is it the right choice for you in 2025? We've gathered insights from trusted industry sources like Edmunds, Kelley Blue Book, Consumer Reports, and U.S. News & World Report to help you make an informed decision.

What Is Car Leasing, and How Does It Work?

Car leasing is essentially a long-term rental. Instead of paying to own the vehicle, you pay for the depreciation that occurs during the lease term, typically 24 to 36 months. According to Edmunds, this means lower monthly payments compared to financing a purchase—but there are mileage limits, wear-and-tear clauses, and lease-end charges to consider.

When Leasing Makes Sense — According to the Pros

Kelley Blue Book (KBB) highlights that leasing may be ideal for drivers who:

Want lower monthly payments

Prefer driving new cars with the latest tech

Don’t plan to drive more than 12,000–15,000 miles annually

Have no interest in owning the vehicle long-term

KBB also emphasizes that leasing is particularly attractive when automakers offer promotional deals with low interest (money factor) and minimal down payments.

The Downsides You Shouldn’t Ignore

Consumer Reports cautions that leasing isn't for everyone. The biggest drawback? You're not building equity. After three years of payments, you return the vehicle and have nothing to show for it. They also warn about expensive penalties for early termination or excess mileage.

Another point from U.S. News & World Report: lease agreements can be confusing. Hidden fees and complex terms might make it hard for some consumers to know exactly what they're signing up for. It’s vital to read the fine print and understand your lease’s “money factor” (the leasing equivalent of an interest rate) and residual value.

Pro Tips for Leasing a Car in 2025

Based on multiple expert recommendations, here are some leasing tips:

Negotiate everything: According to Edmunds, lease prices are negotiable, just like purchase prices.

Know your mileage needs: If you drive more than the standard allowance, negotiate for a higher limit or buy extra miles upfront.

Watch for lease specials: Many automakers offer great incentives—especially at the end of the model year or quarter.

Consider gap insurance: This protects you if your leased car is totaled and worth less than what you owe.

Consumer Reports cautions that leasing isn't for everyone. The biggest drawback? You're not building equity. After three years of payments, you return the vehicle and have nothing to show for it. They also warn about expensive penalties for early termination or excess mileage.

The Bottom Line

Car leasing can be a smart move—if it matches your lifestyle and financial goals. The key is to do your homework. Sites like Edmunds, KBB, Consumer Reports, and U.S. News offer tools and lease calculators that help you estimate costs and compare options. If you're someone who values convenience, lower monthly payments, and driving the latest models, leasing might just be the perfect fit.

But if you’re looking for long-term value, ownership, and customization, buying is probably the better path. Either way, the more informed you are, the better your decision will be.