When you lease a car you are paying to use it for a period of time rather than buy it. Usually, you don't have to give a down-payment, you only pay sales tax on your lower monthly payments, and you pay a financial rate that's similar to an interest rate on a loan. When the lease is up, you either return the car or buy it at it's depreciated value. Leasing a car can make sense for people who like to have a new car every few years, use the car purely for business purposes, or can't afford the upfront costs of buying a car.