Why Financial Experts Argue Against Car Leasing — A Guide for Long-Term Owners

When deciding whether to lease or purchase a vehicle, the financial mathematics often tell a compelling story. Personal finance expert Suze Orman has consistently advocated for buying over leasing, particularly for those planning to keep their cars for extended periods.

The Core Problem With Leasing

The fundamental issue with car leasing centers on mileage restrictions and ongoing costs. Most lease agreements cap annual mileage at 12,000 miles, meaning drivers who exceed this threshold face substantial penalty fees. Add gap insurance requirements to the equation, and the total cost of leasing becomes harder to justify—especially for seniors who may drive less frequently but want reliable, predictable transportation.

Orman’s position is straightforward: leasing represents a massive financial drain compared to ownership. On CNN’s “Who’s Talking to Chris Wallace,” she highlighted how lease agreements trap drivers into perpetual payments with nothing to show for years of spending.

The Purchase Path: Building Equity

The alternative strategy is straightforward but requires patience. Here’s how the economics work:

The Three-Year Window: Finance a vehicle with a standard three-year loan. After 36 months, you own it outright. Given modern automotive reliability standards, that car can reasonably run for another 5-7 years (or longer, depending on driving patterns) without a payment obligation.

Real-World Example: Orman’s personal case demonstrates this principle. Her car has now reached 12 years of reliable service. By following this approach, she eliminated monthly payments decades ago, allowing her to redirect that cash toward retirement savings and other financial priorities.

Why This Matters for Seniors and Long-Term Owners

For older drivers and anyone planning to keep a vehicle long-term, the arithmetic becomes even more favorable. Rather than paying $300-500 monthly in perpetuity through lease agreements, purchasing allows you to build toward debt-free ownership. A well-maintained used car purchased at the right price point can serve as an economical transportation solution for years.

The key is maintenance discipline. Regular servicing, fluid changes, and preventive care transform an aging vehicle into a dependable asset rather than a financial liability.

The Verdict

Whether you’re a senior seeking economical transportation or simply want to optimize your personal finances, the buy-versus-lease decision hinges on one question: Are you willing to invest three years of payments to achieve years of payment-free driving? For most buyers, the answer suggests purchasing makes substantially more financial sense than the continuous expenditure cycle that leasing demands.