If you like the
sound of driving something new every few years and saving money when making a
down-payment, leasing may be right for you.
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When you lease
a vehicle, there are no loans involved. You establish lease terms based on how
many months or miles you want to drive that vehicle (for example: 36 months or
36,000 miles at 12,000 miles per year). You make a down-payment and pay a
monthly fee, just as you would if you were financing. However, the down-payment
you make is generally lower when you lease, and your factory warranty usually covers
the cost of typical service issues that may arise during your lease term.
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When your lease
term is up, you must give the car back to the dealership and pay any excess
depreciation or mileage fees (if any). The car also must look as close to it
did when you got it as possible, so accessories you added must be removed and
permanent alteration or customization isn't allowed. You may have the choice of
buying the car at its residual value, but most people typically lease a
different vehicle under a fresh term or buy a new or used vehicle.