Vehicle leasing is gaining popularity because more people are becoming aware of its benefits. With the ever increasing cost of vehicles, smart people are looking at the total cost of transportation, and are alarmed by their findings. One part of the cost is depreciation. Simply defined, depreciation is the difference between the initial cost and the final realized trade-in value. It is here, more than in any other area, that leasing makes economic sense. Someone once said "I own ALL of my cars." If he did, then he must have a large backyard full of cars. In reality, one uses a car for a specific time, then replaces it with another newer model. Everyone realizes depreciation. A lease payment includes depreciation and interest. Disposing of the used lease car at lease end is the leasing company's responsibility, not the driver's. This one item can save the driver many dollars, and allow him to know exactly what the cost of using the car will be. If the car is worth more than the expected residual, then in many cases the driver can purchase the car for a different driver. If the car is worth less, then the driver just walks away from the car.