Car leasing has experienced dramatic shifts in popularity. It boomed in the 1990s as an affordable way to drive luxury vehicles, but faced challenges in the early 2000s due to falling resale values. The 2020s brought supply chain issues that made leases scarce. Today, the market has stabilized, but whether leasing is wise depends on several factors.
When you lease, you pay for the vehicle's depreciation over a set term, typically 2-3 years, with an annual mileage limit (often 10,000-12,000 miles). Lower mileage limits mean lower payments. At the lease end, you return the car or buy it at a predetermined "residual value."
Currently, leasing can be advantageous, especially for trucks and SUVs with stable residual values, leading to lower payments. It's ideal for those who want the latest technology, the lowest possible monthly payment, and warranty-covered maintenance. However, exceeding mileage limits results in costly penalties, and unused miles are not refunded.
Good vehicles to lease in 2026 include popular SUVs like the Honda CR-V and Toyota RAV4, everyday sedans for fuel economy, and Electric Vehicles (EVs) to avoid concerns about future resale value depreciation.
Key questions to ask dealers include the "Money Factor" (the effective interest rate), the total due at signing, and any disposition fees. A significant down payment can be risky in a lease.
In conclusion, leasing in 2026 is not a financial waste if you stay within mileage limits. It offers an affordable way to drive a new car under warranty with the latest features.