In its simplest form, consider auto leasing simply another way of paying for an automobile, on a month to month rate, for a set period of time (term). Upon expiry of the term (3 years, 5 years), you return the vehicle.
Rather than purchasing a vehicle outright for a set price and finance it through monthly payments on a loan, auto leasing allows you to acquire a vehicle typically for less than what its normal monthly payment would be if you were to buy the car.
The details of leasing a car can be intimidating for some, but simply remember the simplest understanding of what is a car lease, its just another means to pay for the car. We’ll get into the bigger details later. A consumer, or business, can lease all types of vehicles; Mercedes leases, BMW leases, Ford truck leases (ex. GMAC), Toyota Pathfinder leases, etc. From motor cycles, cars, trucks, and capital equipment, can all be leased through a dealership from the leasing company.