The automobile industry is beginning to show signs of a recovery, but there is still a considerable stretch of pavement for them to cover. To get you behind the wheel of a new vehicle, dealers are using a variety of financing tools and incentives, including leasing.

“Leasing a vehicle might be a good option if you can’t afford the down payment and higher monthly payments that come with buying a new automobile,” says Angel Hale-Frater, a Financial Center Manager with Fifth Third Bank.

The mechanics of leasing
Leasing a vehicle is similar to renting an apartment – you make payments, but don’t outright purchase or own the property. Consider leasing if you prefer driving a new vehicle every few years, having the latest in safety features, or a warranty for engine repair and maintenance for as long as you drive the vehicle. Additionally, you may want to lease if you drive an average amount of miles (between 10,000 and 15,000 per year) or dislike the auto-buying process.

Especially important when leasing is to select a vehicle with a good history of high resale values. Be cautious about vehicles that have had a large number of recalls or safety problems. Also be careful about vehicles that significantly change styles each year, because they will not hold their value as well and are expensive to lease. Finally, keep in mind that with leased vehicles, regular insurance is required to account for potential accident costs.

Third-party lenders, such as Fifth Third Bank, offer leases for vehicles that are no more than three years old. Typically these leases last between three and five years and most include an annual mileage capacity of 12,000 to 15,000. If you go over this amount you will be assessed a fee, the standard of which is 40 cents per mile. Also, at the conclusion of your lease, you will be charged for any scratches, nicks larger than 1 ½ inches in diameter or damage due to excessive wear. Hale-Frater recommends a self-check of your vehicle prior to returning it so you can help avoid paying extra fees.

Buy it or return it?
When your lease is up, you have two options:

• Buying may be a smart move if you enjoyed the vehicle. If you choose this option, you will pay the price of the vehicle when it was new, minus depreciation. Any extra mileage fees, as well as excessive wear charges, are waived. “It’s the same as if you had gone to a used car dealership and bought a three-year-old vehicle – only in this case, you are already comfortable with your purchase,” says Hale-Frater.

• Returning is the best option if you’re not convinced it’s the right vehicle for you. Along with returning, you can also upgrade to a newer make or different model. Consider sticking with the same lender and dealer to make the transition as seamless as possible.

Find a plan that’s right for you
If you’re in the market to lease a vehicle, Fifth Third Bank can help. “Our financial professionals will help you work out a plan that’s right for you,” says Hale-Frater.

To learn more about leasing a vehicle, contact Fifth Third at (866) 475-4201 or visit 53.com.

All loans subject to credit review and approval.