Leasing a car means renting a vehicle for a fixed period of time at an agreed-upon amount of money for the lease. It is an alternative to purchasing a car and is commonly offered by dealerships. When you lease a car, you pay for the estimated depreciation of the cars value while you drive it, rather than paying off the value of the car and gaining equity instead, as you would when you buy a car.
Leasing a car has several benefits, including lower monthly payments compared to buying a car, the ability to drive a new car every few years, and worry-free maintenance since leased new cars are almost always under factory warranty. Leasing may also be beneficial if the plan is to change the vehicle at the end of the initial contract, rather than taking ownership.
However, leasing a car also has some drawbacks. For example, you dont own the car at the end of the lease, and you may have to pay additional fees if you exceed the mileage limit or return the car with excessive wear and tear. Additionally, leasing may be more expensive than buying a car in the long run, and it may be harder to find a lender if you have bad credit.
In summary, leasing a car is an option for those who want to drive a new car every few years and have lower monthly payments, but it may not be the best option for everyone.
