When you lease a car, you are renting it for a period of time. When that period on time is over you can return the car to the dealer and lease or buy another one. You also have the option to buy the car at the residual value at the end of the lease. Leasing is a good way to have a newer car at a lower price as long as you do not drive more miles than the lease says. The leasing company accepts the depreciation of the car. When you buy a car and get a loan, you own it and the car has value when you trade it in (less any outstanding loan). If you tend to drive a lot or keep a car for a long time, then leasing is not always the best option. Take your time to decide which option is best for you. Good Luck!
〉 Answered on Jul 3rd, 2008 by Jenny Trostel, Partner at Anderson of Hunt Valley