Originally Posted by SARAFIL

Lease:
-Lower monthly payments (usually)
-Keep reasonable payments without requiring larger cash outlay at time of purchase
-Reduced risk of future market value for people that like to get new cars every 2-3 years anyways
-You can drive more car on the same budget
-Great if you like to get "all the options"... these items usually return pennies on the dollar in terms of resale, but in a lease they are residualized and you pay a small percentage
-You might qualify for some tax benefits
-If something happens that sours your relationship with the car, you know you can walk away without risking resale value problems

but,

-Mileage limits with expensive penalities for excess mileage
-Excess Wear and Tear charges... you better take good care of the car!
-You'll pay lots of interest, unless the car has really cheap lease rates
-No ownership interest in the car
-You're paying payments forever (if you keep leasing) and have nothing to "show" for it in the end
----but, you could also convert your purchase price and upkeep on an owned vehicle into a monthly "cost to operate" expense and compare this to your continous lease monthly payments
-If you decide to keep the car at lease end, it will have cost more than to just buy it upfront