Car leasing is the leasing of the use of a car.  Simply put, you pay to get to use a car for a certain period of time.  Unlike buying a car, the ownership stays with the lessor – you are basically borrowing the car, but paying to do so.  Consider this: you get 12 month car leasing.  For 12 months you make your payments and use the car as you wish.  After the lease expires, you bring the vehicle back to the lessor.  At this point, the lessor may take it back, or have you buy it from him or her, depending on the terms agreed upon during negotiation.

The terms also include the maximum mileage you can accumulate on the vehicle, as well as limits on wear and tear.  By setting the terms early on, both parties can avoid changes midway, making things smoother and easier to manage.  Options such as paying a little more to increase the mileage limits are available. It is possible to get penalties in the form of fees if the vehicle is returned in worse condition than was projected based on the terms of the lease.

To oversimplify a bit, a car lease is a car rental that covers a longer period.  This practice is appealing to lessors too because it can generate repeat business more easily.  Most car lessees, on the other hand, use their vehicles less than they would cars they actually own, and so they will come back to the lessor more often.  This condition leads to a lot of advantages for both parties.