 TITLE: Is Leasing a Car a Good Idea? CONTENT: How Does Leasing a Car Work?\n----------------------------\nThe question of whether to lease or buy a car is somewhat similar to renting vs. buying a home. Renting or leasing might be easier to swing financially on a monthly basis, but will require some concessions you wouldn't make otherwise.\nIf you buy a car, you're free to use it as you please. You'll also be on the hook to pay for any servicing or repairs that aren't under warranty. If a car is financed, you'll own it outright once your loan is paid off. When you no longer want it, it's yours to sell or trade in.\nWhen you lease a car, you don't own it—you pay a fee to drive it for a set term, typically two to four years. You sign a lease agreement with the lessor, typically through a car dealership, and you may have to pay an upfront fee. However, this fee is typically much less than the down payment you'd pay to finance a car or what it would cost to buy a car outright.\nDuring your lease, you'll make monthly payments for a set period of time and must adhere to certain rules included in your lease agreement. You might, for example, be limited in the number of miles you can drive the car annually, and face a fee if you go over that limit. The lease agreement will also specify what's under warranty and who is in charge of maintenance and servicing for expenses not covered by the warranty. In some leases, the lessee is responsible for these expenses, while in others, the lessor pays for them. You should always make sure you know what you are and aren't responsible for financially.\nWhen your lease ends, you'll return the car and may have to pay additional fees to the dealership or lessor. You may be given the option to purchase your lease or lease another vehicle. If you return the car with damage beyond what's considered routine wear and tear, according to the Federal Trade Commission, you are financially responsible for these repairs. END