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A vehicle lease is an agreement in which you get to use a car for a specified period of time in exchange for monthly payments. Leasing a vehicle may be preferable to buying one, depending on your financial situation.

An auto loan reduces the amount you spend upfront and instead spreads it out, making it much more accessible than a cash purchase. It also leaves you with money in the bank to use for other purposes. Draining your savings leaves you without an emergency fund, which could come back to bite you in the future.

Because of depreciation, certified pre-owned cars can be a better value than new cars. They can be purchased for a lower price than what their quality and features might otherwise fetch if they were newer. You can get a car that is nearly new, but because it has been previously owned, you will always pay less for it.