Leasing a vehicle

Leasing a vehicle is another option to get a vehicle. Leasing has many of the advantages of buying a car, with the added benefit of not having to take out a loan to purchase the vehicle. You will have to make a monthly payment on the vehicle and return the vehicle to the dealer when the term of the lease ends.

The main disadvantage is that the money you spend on a lease does not build equity in the car. At the end of your vehicle’s loan term, you own the vehicle. You can choose to continue driving the vehicle, or you can sell it and use that money as a down payment for another car or whatever you want. However, when the term of your lease expires you have to return the vehicle to the dealer. Essentially you are just renting the vehicle when you get a lease.

You are still responsible for all maintenance, gas, and other expenses associated with the vehicle.

For this part of the activity select a vehicle and determine how much the monthly cost of leasing the vehicle would be.