I've considered leasing a few times but I just can't get my head around it. I obviously understand the concepts but just not under what circumstances I'd need to be in for it to be beneficial.
The main benefit is obviously you don't have all your capital tied up in a car, which is very appealing to me whilst the financial sector continues to be volatile.
The way it gets sold to you is that you only finance the cost of the depreciation, not the total cost of the car.
The downsides to me are the limited mileage and high monthly payments due to the short term of usually 2/3 years plus you need to commit to the payments for the term and face a heavy penalty if you want to give the car back early.
If I didn't have the cash to buy outright I think i'd rather get a loan for the full amount and maybe have it over a longer term so that the payments are close to the lease payments, at least then you would own the car outright and could sell it at anytime if needed etc...