Automobile leasing can be a very attractive alternative to buying for many people. So, what benefits does leasing provide when compared to conventional purchase loans?

Lower Monthly Payments: Because you're only paying for the portion of the car or truck that you actually use, your monthly payments are 30%-60% lower than for a purchase loan of the same term.

More Car, More Often: Since your monthly payments are lower, you'll be able to get more car for your money and drive a brand new car every two to four years, depending on the length of your leases.

Fewer Maintenance Headaches: Most people like to lease for a term that coincides with the length of the manufacturer's warranty so that if something major goes wrong with their car, it's always covered.

Lower Upfront Cash Outlay: Most leases require little or no down payment, which makes getting into a new car more affordable and frees up your cash for other things. Furthermore, in most states you don't have to pay a big upfront sales tax when you lease.

Lower Tax Bite: In most US states and in Canada, you only pay sales tax on your monthly lease payments, instead of the entire value of the vehicle.

No Used-Car Hassles: With leasing, the headaches of selling a used car are eliminated. When your lease ends, you simply turn it back to the leasing company and walk away, unless you decide to buy it or trade it.

Having said all this, leasing requires a little more discipline and commitment than buying. Therefore, you'll want to examine your motives and qualifications to determine if you are a good leasing candidate. Please read on.