Buy or Lease?

An approved Lease Agreement

If always driving a new car is a priority for you, leasing a car may make sense. Whether leasing is right for you depends on your financial priorities, driving habits, and your ability to understand the fine print of leasing contracts.

What is a Lease?
An auto lease is an alternative way of financing a car. Rather than financing the total cost of the purchase, you finance only the amount of depreciation expected to occur during the term of the lease. Unlike a traditional car purchase in which you own the car after the payments are complete, in a lease you return the car to the dealer at the end of the lease period and own nothing. A lease is simply a long-term car rental. When all the costs are totaled, however, leasing a car is more expensive overall than owning.

So why would anyone ever lease a car when owning is ultimately less expensive? Leasing allows you to drive a nicer car than you could otherwise afford. Since you finance only the...

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