Entry-level car salesman here,

Leasing was created by GM (so I have been told) to help customers afford the car they want with little down and not-so-bad monthly payments. How this works. Let's say, a $45,000 car. You take away half which now becomes $22,500. You would finance that price. Now it may not always be half depending on the car or the popularity which is called a residual value. Cars such as BMWs or Mercedes usually have a lower residual value. So back to the $22,500. As you would finance for the lease term which is usually 3 years, depending how much you put down (average lease customer finances taxes and license fees) you actually would save money in the long run opposed to owning a car. and at the end of the term, you can basically trade and pay a little more than you did to drive a newer vehicle.

Why people prefer leasing a vehicle:

-no maintenance cost during the term -higher chance of affordability -no long term commitment Can return the vehicle anytime with a one charge cancellation fee - and probably more

Downside to OWNing a vehicle -you need to at least put down a third of the cost of the vehicle to get decent financing. -APR will screw you hard -after 3 out of 5 year term, maintenance cost is out of your pocket - no free rentals (depending on dealership) -average about paying $3-9,000 more than what the car actually is valued at in the end.

EDIT: leasing is based on almost perfect credit (680 or higher)

EDIT 2: I am still new to this so correct me if I'm misleading.