Personal Finance > Your Home
To buy or to lease?
August 1, 2001: 2:47 p.m. ET

A look at which option works better for you and your lifestyle
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NEW YORK (CNNfn) - When you buy a car, you are paying for its entire value; when you lease a car, you are borrowing it from a leasing company for a period of 2 or 3 years and paying only for its depreciation during that period.

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Which option is right for you? The first thing you need to determine is how much cash you have on hand. When you buy a car, even with a loan, you may need to put a certain amount down. But you can lease a car with little or no down payment.

CNNfn's Valerie Morris takes a look buying vs. leasing options. graphic