When you enter into a lease agreement, you are essentially renting the car for an agreed period. Generally, you will pay a lower monthly amount than other finance methods, and you will also not need to worry about the car depreciating in cost while you are driving it. You have the freedom to exchange it for a new model when your lease agreement is up - usually after two or three years - and under no pressure to buy the vehicle at the end of your contract. You can also make the most of enjoying newer, better-equipped cars for a considerably lower price than you would pay to own it.
For some people, the idea of not being tied to a vehicle long term is an attractive prospect, with the end goal being merely returning it to the leasing company in the same condition you rented it. Of course, leasing a car means you do not own it, so any damage accrued during your lease period will need repairing before you return it. However, if you lease a brand new car, it will usually still be under the manufacturer’s warranty, so repair costs should be covered.
One of the main issues with leasing a car is the restrictive nature of your contract. For example, there may be a mileage limit that you will need to pay for should you exceed it. Similarly, if you wish to return your car before your lease agreement ends, you will be expected to pay a sometimes substantial amount.
Buying a car outright, however, means that it is yours to use as you like. You are not tied to any sort of agreement, and you can sell your car whenever you want to upgrade or change models.