QandAs: Autos

What is an Auto Lease?

Answer:
An auto lease is a type of financing for the

use of a vehicle. It is somewhat like an extended rental of a vehicle. When you get a car lease, you will pay a certain amount each month for the use of the car for a set period of time.

You do not own the car, nor are you making payments towards the purchase of the car. You are simply paying for the use of the car. At the end of the lease agreement you will return the car to the company that owns it. Sometimes a lease can be structured so that a portion of the payment is put towards an eventual purchase of the vehicle. Then when the lease period is over, you can choose to buyout the lease on the car and become the owner of the vehicle.