Leasing has become a very important part of the overall American car industry. The most recent reports suggest that between 25 percent and 30 percent of new cars will be leased this year instead of purchased. Television and online ads frequently tout low monthly lease rates to entice car buyers.
Yet despite the fact that car leasing has been around for decades, despite the fact that leasing typically offers a lower monthly payment than the typical car loan, and despite the fact that many financial experts say it is better to lease a depreciating asset like a car versus owning it, leasing is still chosen by a minority of those who acquire new cars. One reason for that is consumers don’t have a solid understanding of how a lease works. To change that, here are 10 things you should know if you plan to lease your next car.