Some advantage of leasing are, short-term leasing offers the following advantages: less total cash tied up in a vehicle, lower down payments and monthly payments, no trade-in or selling inconvenience, and protection against big losses due to depreciation. And if you can get a lease that has a large factory subsidy, you could end up with a good deal.
disadvantages are If you decide to sell the car or turn it in before the end of the lease, you’ll have to pay a substantial penalty for early termination. This includes accidental termination, such as a stolen or totaled car, so be sure to get gap insurance to cover the amount owed that exceeds your insurance.
The early termination penalty is usually the difference between the unpaid depreciation and the auction value of the car, but in some cases, you may be required to make all the remaining payments. Depending on how early you terminate, this could be as much as $5,000 on a $20,000 car. If you can’t afford this, you shouldn’t be leasing.
Leasing usually requires a $100,000/$300,000 liability policy, which may cost a lot more than the level of insurance you’re used to carrying. You’ll have to pay extra fci excess mileage, poor maintenance, and physical damage (unusual wear) at the end of the lease. And your total cost of driving (long-term) will usually be higher on a lease than a conventional purchase, especially if the purchased car is kept for at least 4 years.
Finally, unless you decide to end the renewal cycle by purchasing, you will always be making car payments. If you like “paying things off,” leasing is not for you.