While there are many ways to lease a car, each leasing option comes with its own set of pros and cons for you to consider based on your own personal circumstances. The most common leasing options are:
1) Closed-End Leasing
A closed-end lease is the leasing option that is most often advertised and offered to consumers. Generally speaking, the terms of a closed-end lease will state that you are leasing the car for a fixed number of years and will return the vehicle to the dealership once that period is complete. Though the monthly payments are low, you must also remember to stick within your mileage limits and keep on top of the vehicle's regular maintenance.
2) Open-End Leasing
An open-end lease is pretty much exactly what it sounds like. This lease format allows the driver to keep the car for as long as they would like with absolutely no mileage limits. Because of this flexibility, your monthly leasing fee is likely to be higher than normal. You should also keep in mind that you will have pay for any additional depreciation on the vehicle once you have finished driving it. This means that if a 5-year-old vehicle should be worth $12,000, but yours is only worth $8,000 because of the extra mileage or wear and tear that you have put on it, then you will need to pay the $4,000 difference when the lease is complete.
3) Single-Payment Leasing
If you have a lot of cash on hand, single-payment leasing may be a good option for you. Put simply, you will pay for the entire sum of the lease upfront. This will mean that you won't have to deal with any monthly payments and you can usually negotiate a much lower overall cost when paying in this way.
4) Option-To-Buy Leasing
When leasing any new vehicle you can ask the dealer to include a clause that will allow you to purchase the vehicle at the end of the contract if you wish. You will agree to the purchase price at the time of your lease signing, so don't be afraid to negotiate with the salesperson. Signing an option-to-buy lease can give you additional flexibility in a few years when your lease is up.
Clearly there are a number of different leasing options that you may wish to consider when it comes time to obtain your next vehicle. By carefully looking at the available choices you can ensure that you get to enjoy a great new vehicle while keeping your finances in good shape.