Auto Leasing Losing Appeal

Leasing has become a way of life for many Americans.

In the early 1990s, one in 10 new cars that left the dealer lot were leased, according to Lendingtree.com. By last year, the number had increased to one in five.

But driving a new model every three years could lose some of its appeal now that falling interest rates are making it easier to finance the purchase of a car. Not to mention troubled U.S. manufacturers that are falling over each other to provide cash rebates and other incentives as sales drop.

Lease payments are typically lower than loan payments because they're based on the purchase price of the car minus the vehicle's residual value, or what it's worth at the end of that term. ...