Lease

A car lease is an agreement made between a driver and a car leasing company. Instead of buying the car from the dealer, the driver pays the leasing company to drive the car, and the leasing company purchases the car from the dealer. The driver leases the car for a specified amount of time. When the time is up, the car is returned to the property of the leasing company. At that time, they either lease it out again, or sell it as a used car.

Many people choose to lease cars because they can drive the more current models of their favorite cars at a more reasonable monthly payment than they would if they were to buy the same car and finance the payments. However, when a lease agreement is over, the driver owns nothing. That is the downside to leasing a car. Some corporations choose to lease cars for their employees to drive. This ensures that their employees are not driving "junkers" and making the company look bad.

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