In the last decade, leasing has grown more popular with consumers. It’s estimated that between 25 percent and 30 percent of those who will take delivery of a new car, truck, SUV, or minivan this year will lease it rather than buying it.
The major reason for leasing’s popularity is that it offers consumers lower monthly payments than those associated with purchasing the same vehicle. Many people assume the lower monthly payments mean a lease is a better deal than a purchase, but that is a very simplistic way of looking at the transaction. The monthly payments are lower because consumers are not purchasing their vehicles. Instead, lessees are contracting for their use over specified periods of time for specified amounts of money per month. That could well be perfectly OK with them, but it is not the lowest-cost way to obtain transportation. Here are 10 things you should know about car leasing.