True or False: Leasing cars is generally much cheaper than buying cars since the payment is so much lower.

Leasing cars is often misunderstood in terms of cost. While the monthly payments for leasing are typically lower than those for purchasing a vehicle, this doesn't mean leasing is cheaper overall. When you lease a car, you are essentially renting it for a specified period, generally two to three years, and at the end of the lease, you do not own the vehicle. This means that you will either need to lease another vehicle or purchase one outright once your lease ends, leading to ongoing car expenses without building any equity in the vehicle.

On the other hand, when you purchase a car, your monthly payments may be higher, but once the loan is paid off, you own the car outright and can keep it for as long as you want, potentially reducing your long-term costs. Therefore, while leasing offers the allure of lower monthly payments, the cumulative expenses typically make leasing more expensive than buying over the long run. This distinction highlights why stating that leasing is generally much cheaper than buying cars is not accurate.