I asked Geoff Cudd, owner of How to Buy a Car at the Best Possible Price, if leasing makes sense for young families. He pointed out that most of the time leasing a car is only a smart move when you can write off the payments as a business expense. A car lease for personal use will usually cost you more money than financing in the long run.

“However, like renting a house for a few years, a car lease can be a smart short term strategy if you can’t afford to buy today," added Geoff. "You may want to defer ownership if your financial picture will be different in a few years. Leasing is certainly a reasonable strategy while you build up your bank account. Just don’t use it as an excuse to get more of a car than you can really afford.”

I'm happy with our decision to lease, even though we paid a bit more in the long run. We plan on buying out our vehicle when the lease expires in June and then driving it for another 8-10 years.

For a young family needing a safe new vehicle to get around in, a car lease can help in the first few years while you get a handle on your finances. Just make sure you have an exit strategy so you don't get trapped in a continuous cycle of leasing or financing vehicles.

Also Read:

Should you buy your off-lease car?

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