When you lease a vehicle, you are essentially renting it for a few years (typically three). Leasing carries several benefits. You're not bound to a long-term commitment, monthly payments are generally lower, and taxes are based on each payment instead of the entire cost of the car. Additionally, leased models are under warranty throughout the term, and your lease agreement means you don't have to worry about depreciation.

With a lease, you don't own the vehicle, so you can't make customizations. Plus, leases carry yearly mileage limitations to preserve the vehicle's resale value. Many people choose to lease because it allows them to enjoy the latest automotive features and technologies more often. When the lease concludes, you can upgrade to the latest model, choose a new model to lease, convert the lease to a loan, or hand in the keys and walk away.