Buying vs. leasing a car: Which is the better deal for you?

For many of us, it comes down to a choice between buying or leasing a car.

But there are a few big caveats.

In short, you’re going to end up paying through the nose.

In contrast, theaverage auto loan interest rate is just over 5%.

The bottom line: Shop around.

Talk to your bank first, then see if the dealership can beat its offer.

Leasing a car: How does it work?

A lease is like a long-term rental.

So: no ownership, but fewer responsibilities, too.

At the end of the lease period, you have three options.

you could pay the dealer to keep the car.

The amount listed by Toyota is $329.