Reader Question: Hi, can anyone please explain the whole auto leasing concept to me in laymans terms?

Thanks,

Tom, Atlanta GA

Hey there Tom,

Car leasing (auto leasing) is essentially a way of obtaining a vehicle for a set period of time. Leasing is not renting and renting is not leasing, nor is it financing.

Auto leasing is a popular option for people who want to keep changing their cars every few years without having to bother about selling old ones or buying new ones.

Most people find leasing from a consumer friendly company convenient, time saving and efficient. Auto leasing is a great option for companies since the payment is 100% tax deductible. Its also a great way to drive a new car every two years so long as you don’t go over mileage limits.