I don’t think I’ll ever fully understand why people choose to lease cars rather than opt for ownership (aside from laziness and/or convenience).
Leasing is essentially a glamorous way of burning money, as you’re paying a significant amount each month for something you’ll never own. When the lease term ends, you’ll be left with nothing. Very few people view cars as an asset. Yes, it may be a depreciating asset, but it is an asset nonetheless.
The most economical option is to buy a used car (say 3–4 years old) outright with cash. A new car loses the majority of its value during the first few years, meaning it experiences the bulk of its depreciation early on. Buying used helps you avoid going into negative equity (if financed) and ensures the depreciation rate remains steady.
If paying in cash isn’t an option, consider a Hire Purchase agreement. This avoids the need for a balloon payment at the end of the term, allowing you to maximise your equity.
Alternatively, PCP (Personal Contract Purchase) could be an option if you prefer a new car every few years. However, because PCP involves a balloon payment, it essentially delays debt and forces people into exchanging one debt for another (unless the car is returned or the balloon payment is made).
Just don’t ever lease a car. It’s not worth the financial loss!