If you are considering auto leasing, there are several things to keep in mind.
The monthly payments on a lease are usually lower than monthly auto loan payments on the same vehicle because you are paying for the vehicle's expected depreciation during the lease term, plus a rent charge, taxes, and fees.
But at the end of a lease, you must return the vehicle unless the lease lets you buy it and you agree to the purchase costs and terms.
Consider the beginning, middle and end of auto leasing costs.
Compare different auto leasing offers and terms, including mileage limits, and also consider how long you may want to keep the vehicle.
When you are leasing an auto, you have the right to use the auto for an agreed number of months and miles.
At lease end, you may return the vehicle, pay any end-of-lease fees and charges, and "walk away".
You may buy the vehicle for the additional agreed-upon price if you have a purchase option, which is a typical provision in retail auto leasing contracts.
Keep in mind that in most cases, you will be responsible for an early termination charge if you end the lease early. That charge could be substantial.
Another important auto leasing consideration is the mileage limit: most standard leases are calculated based on a specified number of miles you can drive, typically 15,000 or fewer per year.
You can negotiate a higher mileage limit, but you will normally have an increased monthly payment since the vehicle's depreciation will be greater during your leasing term.
If you exceed the mileage limit set in the auto leasing agreement, you'll probably have to pay additional charges when you return the vehicle.
When you lease, you are also responsible for excess wear and damage, and missing equipment.
You must also service the vehicle in accordance with the manufacturer's recommendations.
Finally, you will have to maintain insurance that meets the auto leasing company's standards.
Be sure to find out the cost of this insurance!
Part III - Auto Leasing and Your Credit Report
What You Should Know About Buying a New Car.
If you are considering buying a new car, be sure to read our special report.
It could literally save you hundreds of dollars!
What You Should Know About Buying a Used Car.
There are a lot of pitfalls to look out for when you are buying a used car.
This special report will help you avoid many of those pitfalls.
What You Should Know About Auto Insurance.
Do you start yawning when someone tries to talk to you about auto insurance?
Our special report will let you know what you need to know, in plain English.
What You Should Know About an Auto Loan.
Thinking about getting an auto loan? Read our special report before you do.
It could save you some headaches - as well as some money!
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What You Should Know About Buying a New Car - Part I What You Should Know About Buying a New Car - Part II
What You Should Know About Buying a Used Car - Part I What You Should Know About Buying a Used Car - Part II
What You Should Know About Buying a Used Car - Part III What You Should Know About Buying a Used Car - Part IV
What You Should Know About Buying a Used Car - Part V What You Should Know About Auto Insurance - Part I
What You Should Know About Auto Insurance - Part II What You Should Know About an Auto Loan - Part I
What You Should Know About an Auto Loan - Part II What You Should Know About an Auto Loan - Part III
What You Should Know About an Auto Loan - Part IV Know Your Insurance Accident Process