For buyers who enjoy driving a new car with the latest features, leasing is an excellent choice. When your lease contract is up — often after two or three years — you return the car and can start the process over again with a new model year.
Lease contracts enable you to drive the car for a specified amount of time, while you make monthly payments. Lease payments typically are lower than a loan payment. Because of this, many buyers are able to afford a nicer car with a lease than they could with a loan.
However, you do deal with a few downsides when leasing. Since you do not own the car, your miles driven must correspond to the amount agreed upon in the leasing contract. In addition, if the vehicles suffers any excessive damage under your care, the costs for the extra wear and tear falls on you to pay.