So you need a new car. And unfortunately for many vehicle consumers, purchasing or leasing one is fraught with bad choices and swindling salesman. The question on your mind is, what’s the best avenue to acquiring a dependable set of wheels? As with any major purchase, there are advantages and disadvantages to consider before you lease your new vehicle.Although almost unheard of ten years ago, leasing has gained popularity exponentially, especially within the luxury cars. Almost 20% of the cars on the market today are leased, and over 75% of the luxury cars are leased. Understanding a LeaseLeasing means that you agree to make monthly payments for your car over a certain period of time. It is roughly the estimated depreciation or how much the value of your car loses during the time that you lease it and interest. With an open-end or equity lease, you agree to purchase the car for a set price after the expiration of your lease. With a close-end lease, you can walk away and lease or purchase another car. Advantages You can have a new car every few years, usually with a lower monthly payment, and depending on the model of car or the car manufacturer, you may not have to put a down payment. Because of the lower monthly payments, leasing allows you to “upgrade” your car to a better model. You never have to worry about selling your car, or trading it in. You may qualify for a tax break if your car is primarily for business use. There is generally a lot less hassle to leasing a car than to owning a car. Disadvantages Leasing generally costs more over time than simply purchasing and financing a car. This is because you are paying the depreciation value of your car, during the period of time that it depreciates the most (the first year). Read your lease’s fine print. How much you drive also depends on whether or not your lease will be beneficial. Put too many miles on your car and you could end up paying twice as much as your monthly payments. Consider wear and tear. Your car must be returned in good condition which means you may have to repair all those dings and bumps. If you have children, this may be especially important. Generally, you can not opt out early from your lease without paying a hefty penalty. Insurance is generally more on a leased car. Although buying a car has many advantages over leasing, the only person who can make that decision is you. Take a look at many of the leasing calculators available on-line, and with any major financial decision, be sure to weigh both the pros and cons carefully before making a conclusion. Category:Home › Autos • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 2 • You should never use after-market auto parts when maintaining or fixing your car • Should a new car be rust-proofed? • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 1 • Five safest cars in North America • How to ensure your teen drives safely after getting a license • Pros and cons of using an hydrogen generator for your car • DIY automotive maintenance: How to change the oil