Until relatively recently, most of the major car manufacturers did not really encourage vehicle leasing to individual customers, it was a part of the business that was more reserved for companies and fleets.

That has changed significantly, and today all the major auto companies actively promote the idea of ​​leasing a vehicle, making it a viable option for individuals rather than buying a car outright.

Leasing a car should really be considered a long-term rental. Many people like the idea of ​​leasing their car, simply because it allows them to own one in a way that they couldn’t otherwise afford.

The obvious disadvantage of leasing a car is that you do not own the car, you do not own the title to the vehicle. On a practical level, this means that you really can’t make many modifications or changes to the vehicle, and you must return it at the end of the lease period.

The decision to buy or lease a vehicle derives especially from the previous distinction. For many, the idea of ​​leasing has a number of benefits that go beyond the issue of vehicle ownership or title ownership.

A car lease is a fixed, long-term contract, usually up to 72 months. There is a fixed monthly payment cost, which is largely based on the depreciation of the vehicle’s value over the lease term.

There will be other conditions, such as a fixed mileage allowance for the term of the lease, and possibly on an annual basis as well.

There is usually an option to purchase additional miles, and the costs of this must be specified in the terms and contracts of the lease.

In addition to having access to a vehicle that the person might not otherwise own, there are also typically significant financial benefits to leasing a car. Many manufacturers offer very specific financing deals for car leases, often at 0% interest, assuming your credit is good enough to qualify.

With any lease, all costs must be specified and made clear at the beginning of the lease period. This includes what is typically known as the lease termination agreement. These are the costs associated with wear and tear on the vehicle.

The manufacturer’s intent is to bring the vehicle into a condition that is appropriate given its age and mileage. If the car has excessive wear and tear beyond what is considered appropriate, the renter will be charged to cover the difference.

These charges can be significant, but the lease must specify in exact detail how they are calculated and on what basis the charges will be made.

Whether buying or leasing a vehicle, the same credit checks will be run against an individual and an evaluation will be done based on your credit score. This will determine whether and on what basis the dealer’s credit or finance company will lend money to the individual.

This will affect the decision itself, the length or period of the loan agreement, the interest rate charged for the life of the loan, and the amount of the down payment.

The choice between buying or leasing is not really a financial one, although leasing is often a much cheaper option. The real decision comes down to a more emotional one, where the individual weighs the pros and cons of the property and related costs, rather than a form of loan, which after a few years means he has to pay it back.