What type of buyer are you?  If you trade your vehicle off every two to three years, consider leasing. You will save on your monthly payment.  With an auto lease, you can drive a higher quality vehicle for the same payment as a vehicle you are purchasing with an auto loan. On the other hand, if you are more interested in paying your vehicle off at some point and want to enjoy the freedom of "no payments", then leasing should not be considered. In the long term, leasing is always more expensive.

Leaning towards a lease? Consider your driving habits. If you drive a predictable number of miles per year, preferrably on the lower side, say 15K or less, leasing is still a good alternative.  If you tend to take a lot of trips, or commute very long distances, look out for over mileage charges!  If you know you will be driving extra miles, it is better to purchase extra miles up front at a lower rate.

The Positives of Leasing:

• Lease payments are generally 25 to 50 percent cheaper then purchase payments on the same vehicle.
• Driving a leased vehicle always ensures that you will have the latest safety features and gadgets. 
• In these uncertain times of gas prices and alternative fuels, you are able to keep abreast of changing fuel alternatives and vehicle economy.
• You will always be covered under warranty.  Less maintainance hassle.
• Less initial cash outlay.  It usually requires less money down to lease a vehicle as compared to buying.
• You are less likely to experience the unpleasantness of being "upside-down" in your payments in the event your vehicle is totalled in an accident or ripped off.

The Negatives of Leasing:

• Contracts are written in such a way that you will pay dearly for early termination.
• You must take exceptionally good care of your vehicle. Good maintenance is vital.
• You will not be able to alter your vehicle.  The vehicle is the property of the leasing company. You can alter your vehicle, but will be penalized the amount of money it would take to bring the vehicle back to it's original condition, less normal wear and tear.
• Leasing requires a better then average credit score.
• You will not "own" your vehicle and you will always have a payment.

If you do decide to lease a vehicle, consider this:

A closed-end lease is the best type of lease for the average consumer.  A closed end lease will allow you to walk away at the end of your contract with no surprises, unless of course there is damage to the vehicle, or there are mileage overages.  An open-end lease can turn nasty if the value of the vehicle is considerably lower then what was originally estimated at the time of the lease.