What is one advantage of leasing a car?

Leasing a car offers the advantage of lower up-front costs primarily because it generally requires a smaller down payment compared to purchasing a vehicle. When leasing, payments are based on the vehicle's depreciation during the lease term rather than its full purchase price, so the monthly payments tend to be lower. This makes leasing more accessible for individuals who may want to drive a new car without the significant initial financial impact of a traditional purchase.

In contrast, options related to insurance costs and equity are not advantages; when leasing a vehicle, insurance requirements can indeed be higher due to the need for comprehensive coverage, and there’s no accumulation of equity in the leased vehicle since you do not own it. Additionally, leasing often involves shorter-term commitments compared to purchasing a car, which is typically a long-term investment.