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What are the advantages of leasing versus buying a car?

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Quick Answer

Advantages of leasing a vehicle versus buying one include not having to finance a loan for the full price of the vehicle, as well as simplifying the trade-in process for a new vehicle, according to U.S. News & World Report. Leasing a vehicle also allows access to a new car every three years or so.

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Full Answer

Leasing is an appropriate option when financing a loan or making a lease payment based on the residual value of the car rather than the full retail value. Instead of structuring payments based off the full value of the vehicle, the payments are based on the difference between the value of the vehicle at the beginning of the lease and the value of the vehicle at the end of the lease, which is typically three years, states U.S. News & World Report.

Another advantage of leasing versus buying a vehicle is that when the lease is up, the car is returned to the dealer or is otherwise financed to purchase it, explains U.S. News & World Report. There’s no need to search out an independent buyer. One more advantage gives drivers the added benefit of having access to state-of-the-art features and technology in a new vehicle every few years.

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