When you lease a car, the company figures out a residual value for the car, which is what the car will be worth after the lease term is over. At the end of lease, you will generally have the option of buying the car for the residual value, or walking away obligation free.
This point is probably a good time to examine your priorities. Did you like the car during the lease period? Do you want to be hobbled with a limitation on the number of miles you can drive for the next three years? Do you simply want to get behind the wheel of a new car? All of these factors should contribute to your decision, and then you can choose the most cost effective route.
If you choose to buy, then you should be aware that many lease companies are willing to negotiate the residual value on the original contract. They are generally, but not always, willing to do so because it saves them the hassle of finding a buyer, or putting the car up for auction. Of course, if you actually pay the full residual value, you're getting a raw deal. However if you do a little research on the same model of car as your lease vehicle in similar condition, you will find that you have some room at the negotiating table. Purchasing the car at the end of lease can net you a good deal, particularly if you like the car in the first place.
Leasing a car is like renting a house. The longer you lease, the more money you spend, assuming of course, that if you buy a car, you drive it for many more years to come.
Should you decide to lease another car, the question you should consider is whether or not you can make the next three years worth of payments. Employment is a fickle thing and if you find yourself suddenly without an income, breaking your next lease agreement can cost you more than if you simply bought the previous car in the first place.
Leasing will save you money in the short term; and in the long term, you can save even more money if you decide to buy at the end of lease for a negotiated amount. The advantages of owning car would be that you no longer have to worry about exceeding travel limits and you can imprint your own stamp on the vehicle. However if the car just isn't right for you, then you're better off considering other options.