NerdWallet's Smart Money Podcast Car Leasing vs. Buying: Hidden Fees, Dealer Agendas, and When to Buy Your Leased Car
Mar 30, 2026
Shannon Bradley, automotive reporter and NerdWallet auto expert, breaks down leasing basics and buyout tradeoffs. She explains residuals, money factors, hidden fees, mileage and wear charges. Short takes on when leasing an EV makes sense and why leasing-then-buying often costs more than financing up front.
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Sean's Speed Racer Civic Taught Him To Value Reliability
- Sean's first car was a 1993 Honda Civic called Speed Racer with manual windows, a dragging muffler, and a broken shift knob.
- The car was unreliable but got him through high school and college, motivating him to later buy a nicer car.
Leasing Is Long Term Renting Not Rent To Own
- A lease is effectively a long-term rental where you pay for depreciation and use rather than ownership benefits.
- Shannon explains leases set a predetermined residual value you can buy at lease end, but monthly payments don't build equity toward that buyout.
Always Check Mileage And End Of Lease Fees
- Check mileage limits and wear rules before signing because excess miles run about $0.12–$0.30 per mile and excessive wear fees are common.
- Also watch for disposition and early-termination fees that don't apply to typical auto loans.