How Does Leasing A Car Work (And Why You Shouldn't Do It)

Leasing a car allows drivers to experience new car luxury and reliability with a potentially lower monthly payment than they'd face with a car loan.

However, that does not mean leasing is less expensive than buying a car. The lower lease payments cover the cost of depreciation on the car and the cost of financing. But the payments do not allow you to build equity in the vehicle.

In this article, we explain how car leases works and why most cost-conscious drivers will want to avoid them. Here's what you need to know.