What is Car Leasing?

Car leasing is a financial arrangement that allows you to use a car for a set period, typically two to four years, without actually owning it. Instead of buying the car outright, you make monthly payments to the leasing company.
Here's how it generally works:
1. Down Payment: You may need to make an initial down payment. This amount will be made clear through your leasing offer.
2. Monthly Payments: You'll make fixed monthly payments throughout the lease term. These payments cover the car's depreciation, along with interest and other fees.
3. Mileage Limit: Leases often come with a mileage limit, such as 8,000 or 12,000 miles per year. If you exceed this limit, you may be charged extra fees.
4. Maintenance: You will be responsible for the car's maintenance and repairs, and you will need to return the car in good condition when the lease ends.
5. End of Lease Options: When the lease term concludes, you can return the car or you can take out a new lease.