What is Leasing?

Leasing is nothing more than a method of paying for the use of a car, truck, SUV, or van over a specified period of time. Sounds like renting, but don't get the two confused because they are very different. While you can rent a car for as little as a day, or even a few hours, leasing typically starts at 24 months and doesn't provide for easy termination or vehicle swapping.

Signing a leasing contract means that you agree to make regular monthly payments, keep appropriate insurance, pay any vehicle taxes and licensing fees, and take good care of the vehicle. Further, you agree that you'll keep the car for a specified number of months (typically 24, 36, or 48 months) and you're expected to stick it out to the end. At the end of the lease you have the opportunity to purchase your vehicle or return the vehicle to the leasing company. Be aware that when returning the vehicle, there will be an inspection of condition and mileage. You will be responsible to pay for any damage or over-mileage charges. It is always in your best interest to keep your vehicle.