Lease 101

What is a lease?

Car leasing was designed to make cars more affordable to consumers. As prices on cars have risen, the ability for consumers to afford a loan has decreased. Enter car leasing. Car leasing allows companies to reduce the monthly payments on a car by only requiring the buyer to pay for the cost of the car during the time they are using it. It's very similar to renting - you don't own anything, you are just paying for the right to use something.

Unlike buying, however, you never actually own the vehicle and you have to return it to the bank at the end of the lease. The idea of leasing first became popular in the 1990's when cars became too expensive to buy for many people. Leasing allows a person to drive a brand new car and make lower monthly payments, thus making the "new car experience" more accessible to more people. In addition, leasing can offer tax breaks for certain occupations.

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