Without knowing all your financial circumstances, it is hard for the auto dealer to provide you with the best advice. Certainly, they do want you to make the right decision, but either way they sell a car. From a financial standpoint, paying cash is still the cheapest way to buy a car.
Many people are reluctant, however, to use large sums to purchase a new car at today's prices.
To encourage slumping sales, both U.S. and foreign manufacturers are offering low interest rates, sustaining the benefits of financing over leasing, at least for the present. With no income tax deduction for personal interest, leasing a new car may begin to make sense in some instances. It is especially advantageous if you lack the funds for a down payment, don't want to tie up your cash, or plan to keep the car for only four years or less. A rough example illustrates the basic economics of leasing. In this particular example, you'd be better off buying the car now.