Bangalore: Just as some people prefer to live in apartments or condos instead of buying houses, many people are choosing to lease their new cars, rather than buying them. It's not possible for everyone to purchase branded cars, because right from cost to maintenance, everything is too costly. Leasing seems to be a better deal for drivers who like to have a new car every few years. The payments are less than on a purchase and you can drive a nicer car for the same price as a purchase payment. But, if you drive the same car for more than 5 years, leasing is definitely not for you. In recent years leasing a vehicle has become very popular and carries some definite advantages. Leasing is a form of financing and is not as same as renting. So when you lease a car you pay only a portion of a vehicle's cost, this includes how much you use up which during the time you're driving it. When leasing a car you should estimate the cost. Look at the market value of the vehicle or vehicles that you prefer. Then estimate the monthly payments from the market value. Call or email a variety of managers at local dealerships. Ask for a quote of the lease prices on your preferred vehicle. Go to the dealership and test drive the car. Bring paperwork like driver's license, proof of insurance and current vehicle registration. Always try and negotiate the lease price. Car leasing can be an attractive alternative to buying due to the following reasons: Lower Monthly Payments You only pay for the portion of the car that you actually use and your monthly lease payments will be 30 percent to 60 percent lower than for a purchase loan for the same car and same term. Option to change cars You can regularly upgrade to new or different models every few years when the lease is up. No Down Payment hen leasing a car there is no down payment, you will have to make a few payments for the few months. Some promotional lease deals require a down payment to get the deal. Gap Coverage Included In situations of an accident or your car has been stolen, the car leases include free 'gap'. This pays off your vehicle even if insurance doesn't cover the full loss. Loans do not generally come with automatic gap protection. Low tax You need not worry about the tax as the lease covers the road tax also. You pay lower sales tax since you aren't paying tax on the entire vehicle purchase price.