Leasing a car means that you are renting a car for a specific and limited time period, usually 2-3 years, and paying for its usage rather than for the full purchase price. You make payments for the use of the car over a certain time period, and you return the car at the end of that period. The key difference in a lease is that after the primary term, the vehicle has to either be returned to the leasing company or purchased for the residual value.

When you lease a car, you are not buying the car outright, but rather paying for the estimated depreciation of the cars value while you drive it. You are essentially renting the car from a finance company, not the dealership that you bought it from. The car is "sold" to the leasing company by the dealer and then that company leases it to you.

Leasing a car has many benefits, such as lower monthly payments compared to buying a car, a smaller down payment, and the ability to drive a new car every few years. Leasing also allows you to always enjoy the benefits of driving a new vehicle, since you can trade up to the most current model at the end of every lease term, and keep driving with the newest technology and safety features. Additionally, since leased new cars are almost always under factory warranty, there are few out-of-pocket repairs and maintenance costs.

However, there are also some drawbacks to leasing a car. For example, you do not own the car outright and must return it at the end of the lease term. You also have mileage restrictions and may face additional fees if you exceed them. Additionally, leasing may not be the best option for those with bad credit, as a good credit score is required to lease a car.

In summary, leasing a car means renting a car for a specific period of time and paying for its usage rather than for the full purchase price. It has its benefits and drawbacks, and whether it is a good idea depends on your lifestyle, driving needs, and financial situation.