What is a key advantage of leasing a vehicle?

Leasing a vehicle offers lower monthly payments compared to financing a purchase. This is because when you lease, you are essentially paying for the depreciation of the vehicle during the lease term, rather than the full purchase price of the vehicle. As a result, the monthly payments tend to be more affordable. Additionally, leasing often requires a smaller down payment than buying, which further lowers the upfront costs associated with acquiring a vehicle.

Leasing also allows drivers to enjoy the latest models and technologies without facing the higher costs of ownership. It’s particularly appealing for those who prefer to drive a new car every few years while maintaining manageable payments. Since you are not actually purchasing the vehicle, this option is geared more toward short-term use rather than long-term investment.

The other choices do not accurately reflect the standard features of vehicle leasing. Typically, at the end of a lease, the vehicle must be returned rather than owned outright. Most leases impose mileage restrictions, and exceeding those can lead to additional fees. Finally, while leasing does often have similar insurance requirements to purchasing a vehicle, it generally does not eliminate the necessity for insurance altogether.