A car lease lets you drive a cool new vehicle without the large cash expense or loan hassle of actually purchasing it.

To lease a car, you simply make a small down payment followed by monthly payments for the term of the lease. When the term expires, you return the car. (And, in most cases, start the process all over again, since you’ll still need to drive.)

But there are tradeoffs:

• You don’t own the car when your lease expires. You’ve essentially been renting, not buying, it. So you don’t have equity in the car to use toward the purchase of another vehicle.

• Over time, say 10 years, the cost of leasing several cars will likely exceed the purchase price of a new or used car.

• You will likely pay penalties on a lease if…

1. You exceed the number of miles in your lease contract.

2. You fail to keep the interior and exterior of the car in good condition.

3. You drive the car hard and inflict significant wear and tear on the car’s performance and appearance.

4. You want to return the car before your contract expires.