In the process of leasing a car, several pros and cons are worth considering. Keep in mind though, that leasing can be a better option for some people than others.

Here's what you need to know about why you should lease instead of buying your vehicle:

1- Lease payments may be cheaper in the long run -

If you don't like the idea of continuing to make monthly payments after buying your vehicle, leasing may be a good choice for you. In this situation, there is no down payment required when signing up for a lease and monthly fees fluctuate with fuel economy; as little as $250 per month or even less depending on what car model you purchase.

2- You don't technically own the vehicle during a lease -

If you want to avoid making monthly payments after buying your vehicle but still want to drive a less expensive car, leasing may be a good choice for you. In this situation, you can skip making that car payment each month and require much less money for down payments as well as trade-in fees once your lease is over.

3- Leasing gives you the option of upgrading vehicles before your term expires -

When leasing a car, it's important to remember that you are paying for the right to drive the car...not the car itself. You can upgrade the vehicle while it is still under the terms of your lease and avoid paying additional fees.

4- Leasing gives you the option of trading in and upgrading before your term expires -

When leasing a car, it's important to remember that you are paying for the right to drive the car...not the car itself. You can upgrade the vehicle while it is still under the terms of your lease and avoid paying additional fees. In some cases, even if you aren't returning a newer model of your leased vehicle, you could trade in any older cars than what you leased (often mileage driven) to get a more favourable resale value on other vehicles.

5- Leasing lets you drive a different brand -

With an available variety of manufacturers and models, there's no reason you can't have a car that is better suited to your driving preferences than what's available from your current manufacturer.

6- Being under lease terms doesn't prevent you from purchasing or upgrading the vehicle at any time -

As long as you are in your lease term, you can buy another vehicle or upgrade to a new model of that same model when it becomes available. In this situation, leasing may be better for you than buying because if the new model isn't what you want after your lease term ends, you can just drive it until it's time to trade it in to get another one.

7- Leasing lets you avoid a down payment -

If you don't have the money available to make a down payment on a car, leasing may be the best option for you. With no money due at signing and no trade-in required, it costs nothing to initiate the lease process.

8- Lease payments decrease with cheaper gas prices -

If you drive more miles during periods where gas prices are lower, leasing can help reduce your monthly fees when gas prices are high.

9- Lease offers different payment plans -

Instead of paying sales taxes and registration fees up front, most leases offer drivers the option of covering those costs at the end of their contract or paying them out over time.

10- You don't have to purchase the vehicle if you don't want it -

Leasing can be a great option for those who aren't interested in purchasing a car after their lease term. In this situation, you are always under the terms of your lease and have the option of turning in your leased vehicle at any time without penalties or additional fees.

11- You can get a new, more rewarding job and make different financial considerations -

If you decide to leave your job or make another major financial decision when moving from one place to another, leasing may still be the best option for you. In this situation, you can simply turn in your leased car because you won't have started making payments on it. Because you won't be obligated to make lease payments, you can focus on other aspects of new financial considerations that would otherwise require you to make payments on your leased vehicle.

12- You can drive a different car in your spare time -

If you want to drive another car after your lease term ends, leasing can be a great option for you. In this situation, most leases offer the option of returning the vehicle with a full tank of gas without any penalties or additional fees.

13- Freedom to drive mostly local -

If you want to avoid making payments on a car while travelling outside of your home state, leasing may be a good choice for you. In this situation, you are only responsible for making lease payments in your home state and don't have to worry about being under contract with any specific manufacturer.

14- Leasing allows you to return the vehicle without additional fees -

With most leases, there are no penalties for returning a leased vehicle. As long as the terms of your contract are met, no matter when you return it, there is nothing to pay beyond a minor hospitalization fee that covers an inspection of the vehicle returned.

15- The number of miles driven per year may drop once you have a leased vehicle -

Since lease drivers don't own their vehicles and can only drive them during their contract period, they tend to drive less after signing up for a lease. In this situation, monthly lease fees are much lower than what they would be were you paying for the payment of your vehicle.

16- Leasing may allow you to help your credit score -

If you have poor credit, leasing can help improve your credit score. As long as you pay the monthly lease payments on time, no late fees will be assessed. Being responsible with car payments and paying down the amount of a loan from time to time can help improve your credit by allowing other lenders to see a good payment history when requesting a loan for another vehicle purchase or a new mortgage.

17- Leasing may be a great option for sharing with a family member -

If you consider leasing your car to someone else in your family, this may be the option for them. In this situation, you will only be responsible for making lease payments on the vehicle that you've leased to them and can help make sure that they are not driving your vehicle any more than they already are.

18- You can avoid major repairs -

Since most leases allow drivers access to their vehicles without paying to have them repaired, many worries about major repairs can be alleviated when you are carrying less of a loan balance. This allows other financial considerations like putting money toward a vacation or investments to take precedence over having the car repaired.

19- Leasing can help students who don't own a car start a driving history -

If you are an undergraduate or graduate student, you may not have the money available to purchase a vehicle. In this situation, leasing may be the best option for you.

20- You can choose the mileage allowance that makes sense for your budget and lifestyle

If you want to drive more miles or if you want to pay less each month on leasing fees, most leases allow drivers to select how many miles they drive each year. If you want to drive less, you can lessen your lease fees by selecting lower mileage allowances.

Conclusion

If you're interested in new vehicles but don't want to spend a lot, leasing can be a great option. Changing cars more often also gives you the chance to drive a nicer car than you might be able to afford outright. However, there are some downsides to leasing, including potentially higher monthly payments and being locked in for the length of the lease agreement. Ultimately, the decision whether or not to lease comes down to your personal financial situation and what’s important to you.

Are you leaning towards leasing after reading these pros and cons?