When you’re considering the purchase of a new car, there are a lot of things you have to think about. Do you like the car enough to live with it for the next three, five, or even seven years? Are the payments actually feasible for your budget, or have you just convinced yourself that you’ll make it work? The purchase of a vehicle is exciting, of course, so we make ourselves believe that everything is going to stay as exciting, forever. The truth is, however, that buying a car is a big commitment, too much for most people. For these people, there’s leasing.

Leasing is a better option for many people, but it doesn’t fit everyone’s lifestyle, so there are things to consider before signing the paperwork. Be sure to talk through all of the details with the associate at the dealership before making the final decision on what it best for you. As with any major decision, there are advantages and disadvantages to consider. No financial decision should be taken lightly, so make sure you examine each aspect of a lease that you think is an upside and weigh it against the downsides to ensure that you’re making the right decision for yourself.

The first item in the pro column for a lease is that you’re getting a new vehicle every thirty-six months. If you’re someone who gets easily bored and wants something new on a regular basis, leasing is a great decision for you. A lease allows drivers to turn their vehicle into the dealership every three years when the lease term comes to a close. Lessees are never faced with the period of time when repairs are costing more than the car is worth. The con the coincides with this pro, however, is that the vehicle is never truly yours. You’re essentially renting a car for the long term, just like renting an apartment versus buying a house.

The second advantage of a lease is that the payment is typically quite a bit lower than a purchase. Because a lease will never result in the full ownership of that vehicle there isn’t a huge price tag that must be paid in a short period of time. Lease payments tend to be more on the reasonable side of the spectrum, so drivers can often get more car than they typically would with a purchase. One disadvantage that goes hand in hand with the lower payment is that the car actually costs you more in the long run, given the higher finance charges associated with it. Also, keep in mind that with a leased vehicle, there is never a time when you stop paying, as you never own the vehicle.

Down payments are often a huge drawback of buying a new car, as the two usually go hand in hand. However, with a lease, the down payment is usually lower. For many people, this is one of the biggest advantages, as not many people have a great deal of money saved to put down up front. Usually, the monthly payments are commensurate with the size of the down payment, so keep in mind that the amount down will be somewhat negotiable. However, in a lease, your insurance payments are usually going to be quite a bit higher as you’ll always carry full coverage insurance to satisfy the terms of your lease.

We’ve all encountered the car that hits the end of the warranty right before everything starts to fall apart. With a lease, this doesn’t happen, as a leased car never reaches the end of its warranty, and therefore lessees aren’t responsible for taking care of high-priced repair costs. Coupled with the fact that many leases include a maintenance package for an additional cost, there is often very little expense that will go into a leased car. Some people, however, dislike that fact that they’re unable to fully customize a leased vehicle. They can’t make changes, without verifying that it won’t void the terms of the lease. If you’re considered tinted windows, better speakers, or remote start, check your paperwork before spending the money. More often than not, that isn’t an option.

For some people, leasing is the obvious choice. They’re not driving extensive distances; so, therefore, the mileage limit is never a problem. They prefer flashier and newer technology, and the new car every three years provides that. There are others, however, that can’t seem to get past that they’ll never own the vehicle they’ve fallen in love with, and buying will always be the better option. It’s all a matter of taste, which of the two options are going to be the best option. Consider all the advantages and disadvantages carefully before making the commitment.