People lease cars instead of purchasing them outright for many reasons. If you are self-employed, and wish to deduct your monthly payments as a business expense on your tax return, you may be able to when you lease a car. Some people would like to be able to drive a fancy, luxury car with lower payments and cash outlay. When you lease you may not have to put a large amount of money down for a down payment, and your monthly payments may be relatively lower than buying the car or financing the purchase of a new car. Some do not like the idea of being locked into a 60-month loan to buy a new car. Others like the convenience of being able to essentially rent such a car and turn it in after a few years of driving. And still others lease so that they can test drive the car for a few years, and if they like it they can get financing or pay cash to buy the car outright. And they do not have to pay for the upkeep of the car during that time, as it is a leased vehicle.
Buying a used car can be a wise choice. You can save a lot of money on a vehicle that is still in good condition, though you might also have some unexpected repairs.