Leasing generally offers the advantage of little or no down payment and low monthly payments. Leasing can allow you to drive a better-equipped vehicle than you might have been able to purchase using cash or credit. Leasing usually results in lower monthly payments than purchasing over the same term. Generally, leasing is a win-win for most drivers. The exceptions are those that want to keep their cars for a while or those that put a lot of miles on their vehicle each year.

A lease is actually a payment for the use of a vehicle over a specified period of time, rather than a purchase. Your payments cover the vehicle's depreciation over the term of the lease. Because this amount is usually much less than the full purchase price, the payments can be less. You (referred to as the "Lessee") agree to maintain the car during the lease and only put the number of miles specified in the lease agreement. At the end of the lease, you return the vehicle or may take advantage of the option to purchase it.