If Monthly Car Payment is Paramount Consider Vehicle Leasing

Rising interest rates are prompting a renewed consumer interest in vehicle leasing. Generally speaking, a monthly payment is less for a vehicle lease because you are only making a payment on a portion of the vehicle's value.

Leasing can be a good option for people who like to trade cars every few years and who don't put excessive miles on their vehicles. Leasing also allows you to drive higher-end models which may otherwise be out of your price range.

Vehicle leasing is not right for everyone. If you put a lot of miles on your vehicles, or if you are the kind of person who keeps a vehicle for five to ten years then leasing probably isn't for you.

Keep in mind that vehicle leasing is simply an alternative way to finance a vehicle. Don't confuse it with renting a car. Leasing requires the same or a higher credit rating than you will need to get a conventional car loan, and once you sign a vehicle leasing contract you are locked in for the term of the lease. Vehicle lease payments are reported to the credit bureaus just like any other credit payment.

18.9% of cars and trucks that were sold off of car lots in 2006 were vehicle leases, which is up from 17.5% in 2005 and 15.2% in 2004.

Car manufacturers use lease deals to reduce their inventories, and to get buyers to return to car dealers sooner than they normally would if they financed a vehicle.

Remember, leasing isn't for everyone. Research your options carefully before making a decision. For additional information and resources on vehicle leasing go to: Car Leasing Tips.