By Brian J. O'Connor
Detroit News Finance Editor

After a week of press previews, the North American International Auto Show has opened to the public, who, rather than writing about cars, can do the auto industry the far greater benefit of actually buying them.

Along with the new models, car buyers are seeing the return of auto leasing, which 18 months ago was becoming nearly as extinct as vent windows and tail fins.

While leasing traditionally accounted for about 20 percent of auto sales, according to Edmunds.com, it hit a low of 7.2 percent in August. Lenders, dealers and manufacturers cut back or stopped offering leases after being hit by the financial crisis, high gas prices and auto industry restructuring. With all those problems getting under control, leasing offers are picking up again, trending upward after hitting a high for 2009 of 12.8 percent in October.

Taking the depreciation hit

But just because leasing is making a comeback doesn't mean it's necessarily a good deal, says Jeff Bartlett, deputy editor for autos at ConsumerReports.com. Lease customers lose the most value as the new vehicle rapidly depreciates, but they also give up the long-term value of driving the car for several more years.

"Leasing is the answer to the question, 'What can I do to pay the most for a new car?' " Bartlett says. "The answer is pay for a vehicle during its period of greatest depreciation."

The slower rate of depreciation - that is, lost value as the vehicle racks up mileage - for luxury cars is one reason why leasing has traditionally been more popular with brands such as BMW, Lexus, Jaguar and Mercedes. Leasing can also make sense for business owners and the self-employed, who can deduct their business use.

Always check the fine print

Other reasons to lease rather than buy are if you want to continually drive a new car covered by a factory warranty, get the latest technology or drive high-value luxury vehicles or if you change cars frequently, says Philip Reed, Edmunds.com senior consumer advice editor. But even then, lease for three years to get the best value and don't put a lot of money down.

"Leasing is about maximizing your cash flow and not tying up your money," Reed says. "If you get in an accident and the car is totaled in a few months, insurance will pay it off, but you'll lose a good part of what you've put down."

Another point is that, as with any car purchase, you need to match the lease to your needs, read the fine print and do your homework.

"There are a lot of leases advertised at $199 a month, but you'll have trouble getting that because the dealer didn't list sales tax, which is in the lease, as well as lending fees," Reed says.

Another challenge is estimating how many miles you'll put on the car. Pay for too few, and you can end up parking the car to avoid over-mileage penalties - while still making the monthly payment. Miles are cheaper to buy up front, but if you take too many, you're paying for miles you didn't drive, Bartlett notes.

Another drawback to leasing is the lack of flexibility. If you buy a lease with 10,000 miles a year and change jobs so that your commute covers 12,000 miles, you'll face paying for the extra miles. And in the case of a layoff or other financial challenge, you don't have the option of selling the car or trading it in on something cheaper.

"If you agree to make 24 payments, you can't just make 18 of them," Bartlett says. "It's like a cell phone plan. If you break the contract, you can pay extra, but then you're paying for a car you don't have."

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Balancing act: To lease or buy