When you want to buy a car, you have three options: buy the car (with an auto loan), lease the car or pay cash for the car. The difference between leasing the car and buying it with a loan is that when you lease it you just borrow it from the dealer and you have to return it at the end. The lease monthly payments are generally lower than the payments on a loan. Whether you lease or buy, in both cases you finance your purchase. When you lease, you finance the use of a vehicle, and when you take a loan, you finance the purchase of a vehicle. It is not possible to say which option is better, you can only decide which is better for you, because each has its own benefits and drawbacks. You can read more about the subtleties of car financing in the appropriate sections of the website.