Leasing is simply another way to finance the use of a vehicle. A lease itself isn't good or bad – it's a financing tool. You decide whether this type of financing tool makes sense for you.

But first, you need to understand the simple reason the industry has single-mindedly pushed leasing over buying – bigger profits!

Leasing hasn't been pushed because it's better for the customer. It's been pushed because it has allowed dealerships and other leasing outlets to make far bigger profits on customers.

Why have leasing companies been able to make such bigger profits on leasing versus selling the same vehicle? – Because leasing, even with the new lease regulations, doesn't require as much disclosure as buying a vehicle. Did the lease tell you an interest rate? Did the lease clearly tell you what you're receiving for your trade-in? And did the lease hide the important facts of the lease ? – the ones that cost you money – in tiny print on the back of the lease?

Excessive wear and tear charges – Own a car, and you can ding it up all you want. It's yours. But because you don't own a lease vehicle, you pay money if the vehicle has excess damage over normal wear and tear when you finally give it back to the leasing company. But who determines "normal wear and tear?" The leasing agent, such as the dealership. And unfortunately, many leasing agents in the past have charged customers ridiculous amounts for wear and tear – they've turned wear and tear into a profit center. What's your recourse if this happens to you? Virtually none. The lease contract gives the leasing agent the right to do this! Right now, many class-action lawsuits are addressing this serious problem.