 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: When Does Leasing a Car Make Sense?\n-----------------------------------\nLeasing can be an attractive short-term option for a car if you don't want to commit to a car loan. But when the lease ends, you must return the car, whereas paying off a loan enables you to own the vehicle outright.\nLet's look at some of the pros and cons:\n### Pros\n*   Ability to drive a newer car\n*   Smaller down payment than with a car loan\n*   Lower monthly payments\n*   Less likely to need costly repairs since the car will probably be under warranty\n*   Short-term commitment (usually 24 to 36 months), after which you can lease or buy a different car\n### Cons\n*   No equity or ownership in the vehicle\n*   Mileage limitations (you're typically restricted to a certain number of miles per year)\n*   Lease fees\n*   Possible gap insurance requirement in case the car is totaled before the lease is up\nBuying and leasing both can make sense under different circumstances. If your priority is driving a new car and you like the option of switching to a new vehicle every few years, a lease may be right for you. The lower monthly payments may also be easier on your budget, although you still have to account for maintenance and repairs that come up during the lease term.\nBut taking out a car loan to buy a car puts you on the path to full ownership, so once it's paid off, the vehicle is yours to do with as you please. You can drive it for years with no additional payments or sell it for cash. An auto loan also doesn't restrict your annual mileage, so if you commute a long distance or take long road trips, buying could be a better choice. END