Advantages of Leasing

Lower monthly payments with a low - or no - down payment.

You can drive a better car for less money.

Lower repair costs because you are always under the vehicle's included factory warranty.

You can more easily transition to a new car every two or three years.

There are no trade-in hassles at the end of the lease.

You pay less sales tax.

You don't own the car at the end of the lease (although there is always the option to buy).

Your mileage is typically limited to 10,000, 12,000, or 15,000 miles a year (you can purchase extra).

Lease contracts can be confusing and filled with unfamiliar terminology.

In the long run, leasing is more expensive than buying a car and keeping it for years. (if you buy the lease out at the end)

Excessive wear-and-tear charges can be a nasty surprise at the end of the lease.

It's costly to terminate a lease early if your driving needs change.

You can modify your car as you please.

Car buying is more economical over the long term.

You can drive as much as you like. There's no excess mileage penalty.

You have more flexibility since you can sell the car whenever you want.

It requires a higher down payment to avoid being "upside down" in the loan, meaning you owe more than the car is worth.

Monthly payments are higher than lease payments.

Once the warranty expires, you're responsible for repair costs.

You face possible trade-in or selling hassles when you decide to get your next car.

More of your ready cash is tied up in a car, which depreciates in value.