Should I lease or buy a car ? Does one give me more tax deduction? Maybe.  Deciding to buy or lease a car should not be determined based on tax deduction alone. Both allow deduction of some sort but with limitations. I like to ask clients, how much do you drive? Do you like to hold onto a car for more than 3 years? Cars loose value as soon as you drive it off the lot, so there are alot of things to consider before deciding to lease or buy a car.