It always depends on the deal at that point in time. What I have found that works best is to find the car I want and negotiate the best price possible for that car. I tell the sales person up front that I will decide later if I will lease, finance or write a check for the full amount. Once you have a final price for that specific car, then and only then sit down with the finance person and discuss all three options. And I have done all three in the past. You have to have the final price you agree to before you can compare which way is best. So much depends on what incentives are in place.
Examples are things like you see advertised, $10,000 rebates and 0% interest. Those may only come into play at list price. But at a deeply discounted price I was happy with, I once got another 3K discount if I took their financing. It had no prepayment penalty so I did and paid it off 30 days later. The dealership had a significant incentive from the manufacturer to finance cars. Another time at that final finance meeting there was a lease incentive with a very high residual value (equals lower lease payment) so leasing made more sense. I also got .05% interest (1/2 of 1%) once on a deeply discounted price.
Always get the best possible price first then figure out the best way to pay for it. Will save you lots of money.
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Life is to short to drink cheap wine.
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