Finance Guide Center

What does leasing mean?

Hi. I am very interested in leasing a Car, but I do not know what the term Leasing means. If I understand correctly, leasing means the car is not yours, but rather like renting it? Could you please explain what Leasing a car is?

Public Comments

1. It is renting. If you do not know what leasing is; mostly likely it is not for you, and will cost you a great deal more than purchasing. What does your personal tax accountant say? Don't have one - then leasing is for sure not for you.
2. When you lease a vehicle, you don't own it. You get to use it during the lease term, for a monthly fee, but must return it at the end of the lease. In many leases, you have the option to buy the vehicle at the end of the lease. More info here: http://www.nolo.com/article.cfm/ObjectID/96E9AB4E-8C60-4ECA-9CB0FB04A38A41A1/catID/0303DFBE-D323-4C30-B540C900462CD64F/104/284/102/ART/
3. Renting
4. When you lease a car, you are basically paying for the right to use a car for a time period, usually for three years. After that time, you simply return the car, trading it in for a different model or year. When you lease a car, you are not doing business with the dealer or owner of the car, but with the leasing company. The leasing company in the form of a bank or a car dealer buys the car from the manufacturing company, and then leases it out to somebody.
5. Leasing is just another term for renting. It's just like renting an apartment. You pay so much every month and when your lease is up you give it back and move out. And just like the apartment you get screwed by the landlord when your lease is up.