Short answer: Leasing a car can be a good idea if you want a new vehicle with the latest technology and predictable costs, but it is usually not ideal if you want long-term ownership.
Is Leasing a Car a Good Idea for Me?
Leasing a car is often misunderstood. It is not inherently good or bad. Like any financial decision, leasing is simply a tool—one that works well when used correctly and poorly when misunderstood.
With more than 35 years of experience advising drivers, Wheels to Lease has seen leasing work exceptionally well in the right situations—and fail when used for the wrong reasons. The purpose of this guide is to help drivers decide honestly whether leasing fits their needs.
When leasing is a good idea
You like driving a new car every few years
You want the latest safety and technology features
You drive a predictable number of miles each year
You prefer flexibility over long-term ownership
When leasing is a bad idea
You want long-term ownership
You plan to keep a vehicle well past the warranty period
You do not want to track mileage at all
The biggest leasing myths
Myth 1: “I drive too many miles to lease.”
In reality, most drivers fall between 10,000 and 15,000 miles per year. Mileage alone rarely disqualifies someone from leasing. The more common issue is choosing mileage without proper planning. When mileage is selected realistically and the lease is structured correctly, leasing works for the majority of drivers.
Myth 2: “I don’t drive enough miles, so leasing doesn’t make sense.”
Low mileage does not disqualify leasing. In many cases, it can work to a driver’s advantage when the lease is built around actual driving habits rather than assumptions.
Myth 3: “I have the cash, so buying is always smarter.”
Having cash provides options, not an automatic answer. Leasing is simply another form of buying—often best described as a three-year test drive. The driver pays for the portion of the vehicle used during that period, while retaining the option to buy, upgrade, or walk away at lease end.
Leasing vs buying: how the decision should be framed
The decision between leasing and buying is less about price and more about flexibility versus long-term ownership.
Leasing often makes sense for drivers who:
expect their vehicle needs to change over time
want the latest technology and safety features
prefer predictable costs and shorter commitments
value flexibility over keeping a vehicle long-term
Buying may be the better option for drivers who:
Neither option is universally better. Each serves a different purpose.
Real-world scenarios seen over 35+ years
When leasing is not the right choice
Drivers who plan to pay off a vehicle immediately generally should not lease. Leasing is designed to provide flexibility. Removing that flexibility eliminates its primary advantage.
When leasing clearly benefits the driver
Leasing often works well for drivers whose needs continue to change—growing families, shifting work demands, evolving commutes, or changing priorities. Leasing allows these drivers to adapt without being locked into a long-term commitment.
When buying seems smarter—but is not
A common situation involves a major accident. Even after repairs, a vehicle’s resale or trade-in value may be permanently reduced. Leasing can limit exposure to this type of unexpected depreciation.
Credit and leasing: what really matters
Leasing generally works best for drivers with a credit score of 650 or higher. However, approval is not based on score alone.
A driver’s overall credit profile matters—including payment history, stability, and structure—not just the number shown on the credit report.
An overlooked risk: GAP exposure
One important factor drivers should consider is GAP exposure—the difference between what insurance pays and what is owed if a vehicle is totaled. A properly structured lease accounts for this risk upfront. A poorly structured lease may not.
Final answer: is leasing a car a good idea for you?
Leasing is a good idea for drivers who want a new car with the latest technology and safety features, and a bad idea for drivers who want long-term ownership.
The most important question is not “Is leasing good or bad?” It is: “Is leasing the right tool for what I want from my vehicle?”
Frequently asked questions
What credit score is needed to lease a car?
Most successful lessees have a credit score of 650 or higher, but approval depends on the full credit profile—not just the score.
Is leasing cheaper than buying?
Leasing often has lower monthly payments than buying, but total cost depends on how long the vehicle is kept and how it is used.
Can you buy a car at the end of a lease?
Yes. Most leases include a buyout option, allowing the driver to purchase the vehicle at a predetermined price.
How many miles can you drive on a lease?
Most drivers fall between 10,000 and 15,000 miles per year. With proper planning, leases can be structured to match actual driving habits.
