For the vast majority of people, leasing is a losing proposition. Generally, you should only lease a vehicle if most of the following things are true: 1) You don't drive very much 2) You keep your car in immaculate shape 3) You can deduct part of the lease cost on your taxes 4) The car maker is massively subsidizing the lease cost. 5) You absolutely *have* to have a new car every 2 or 3 years. 6) Your ego is so fragile that you must be seen in a new car rather than one that's 2-3 years old and was leased by some other sucker...er, I mean customer. Otherwise, a purchase is probably a better option. http://www.edmunds.com/advice/buying/articles/47079/article.html http://financialplan.about.com/cs/cars/a/CarLeaseOrBuy.htm Just from personal experience, I have found two *huge* problems with leasing 1) Almost everyone I know who has leased a car has exceeded the mileage limitation, usually by a large amount. That left them owing large amounts of money at the lease termination. 2) The payoff curve on a lease is linear, while the depreciation curve on a car is very steep right after purchase, but then levels off with time. If you terminate the lease early for any reason, you have to pay off the difference between the payments made and the actual value of the car. This can be several thousand dollars (yes, I have felt this pain...:-P....)