| Buying a car can be rather complicated, as the | | | | payments in the commercials, but little (except in |
| whole process tends to be somewhat mysterious. | | | | the fine print) about the amount you have to pay |
| It's often hard to know if you're getting a good | | | | upfront. That will include title fees, license fees, |
| deal or not, even as the salesman claims that he's | | | | deposits and a reduction in the capital cost that |
| selling you the car "at invoice." Leasing a car is | | | | will reduce the size of your monthly payments. |
| much the same way, except that the terminology | | | | Ask about this ahead of time; you don't want |
| is different and you don't get to keep the car. | | | | "sticker shock" when you see the total. |
| You're still going to spend a lot of money, though, | | | | Duration of the lease - Make sure you understand |
| so it makes sense to be as well informed about | | | | how long the lease will last. If you want a car for |
| leasing as possible. | | | | three years, make sure the lease isn't for 24 |
| For most consumers, leasing makes less sense | | | | months. |
| than buying. When you buy, you have a tangible | | | | What happens at lease end? You may have to |
| product that you can resell later or trade in for a | | | | pay, or you may get to walk away, or you may |
| new one. With a lease, the only thing you are | | | | have the opportunity to buy the vehicle. The end |
| buying is the right to use the vehicle for a while. If | | | | of lease situation is spelled out in the document; |
| you don't drive a lot or if you just like having a | | | | make sure you understand it before you sign. |
| new vehicle every couple of years, leasing may | | | | Total mileage allowance - The lease will stipulate |
| be a good choice for you. Before you get | | | | how many miles you may drive over the course |
| involved, here are some things you may wish to | | | | of the lease; you will have to pay a per mile |
| consider: | | | | charge if you exceed that. The per mile fee can |
| The money factor - This is the equivalent of an | | | | be excessive, so make sure that the number of |
| interest rate on a car sale. The money factor, in | | | | miles that you are given matches your driving |
| order to remain mysterious, will be presented as | | | | expectations. Keep in mind that the mileage |
| an odd number with a lot of decimal places. To | | | | amount and the per mile fee is negotiable. |
| convert it to an approximate interest rate, | | | | Each of these things can be an expensive |
| multiply it by 24. The money factor, like just | | | | nightmare if you aren't prepared for them. Leasing |
| about everything else in a lease, should be | | | | a car is different from buying one and you need |
| negotiable. | | | | to understand that long before you sign your |
| The amount due at signing - The size of the | | | | name on the contract. Otherwise, you could be in |
| check that you have to submit when you sign the | | | | for an expensive ride. |
| lease can be sizable. You'll hear a lot about low | | | | |