Things to keep in mind when you are deciding whether or not to lease a car: How much money do I have for a down payment? How much money will I need to pay at the beginning of the lease? (Even if the lease is a “zero down” offer, you may still have to pay the first month’s payment, a security deposit, and/or an acquisition fee. These up-front amounts may add up to several hundred dollars or more depending on the value of the vehicle.) How much can I afford for a monthly payment? How many miles do I drive in a year? (If you drive more than the number of miles allotted under your lease, you will usually have to pay an excess mileage fee at the end of the lease.) Am I the type of person who likes to be in a new car every 2-4 years? Am I going to want to buy the car at the end of the lease? (If you think you will want to buy the car at the end of the lease, consider buying the car up front. You will likely pay less to buy the car up front than you would to lease it and then buy it at lease end.) Things to keep in mind when negotiating your lease: Have I negotiated the capitalized cost (the value of the vehicle at the beginning of the lease) of the vehicle? Just as you would negotiate the purchase price of a car, you should also negotiate the capitalized cost. Does the lease contract reflect the trade-in, rebates, and down payment paid up-front (if applicable)? These amounts should be deducted from the capitalized cost or credited toward the other amounts you owe at lease signing. Do I understand how my monthly payments have been calculated? Who is responsible for paying for repairs during the lease period? Is there a manufacturer’s warranty covering the vehicle during the lease period? Have I can negotiated the mileage allotted under the lease? How much insurance coverage is the leasing company requiring me to carry on the car? Is this more than my current coverage, and can I afford this level of coverage? How will I be billed for annual excise tax on the car? Will the leasing company forward the bill to me or will the tax be rolled into my monthly payments? Will I pay for “gap coverage” on the car or is there a “gap waiver” provision in the lease? Do I understand what the gap coverage or gap waiver will cover in the event of an accident involving my car or the theft of my car? (Gap coverage would pay for the difference between the payoff from the insurance company and the amount due under the lease contract. A gap waiver releases you from responsibility for any difference between the payoff from the insurance company and the amount due under the lease contract not including your deductible and any past due amounts you may owe under the lease. You may still be responsible for early termination penalties.) Do I understand how the early termination penalty will be calculated if I end the lease early? (Ask the dealer to compute how much you would owe if you ended the lease after a year.) Do I understand how “excess wear” will be determined at the end of my lease and how much I will be charged for it? Do I understand what, if any, payments I may be required to make at the end of the lease? (For example, you may be responsible for a disposition fee if you do not buy the car at the end of the lease.) Do I want to buy the car at the end of the lease? (If you think you might want to buy the car you should negotiate up-front the purchase option price of the car.) Things to keep in mind at the end of the lease: Have I stayed within the mileage allotted under the lease? If not, how much will I owe in excess mileage fees? Is there any damage to the car that would be considered “excess wear” under the lease agreement? (If there is, you should get an estimate for the repairs before you return the car so you have an idea of how much it should cost to make the repairs. You may also want to consider getting the repairs done before you return the car.) Did I pay a refundable security deposit at the beginning of the lease? (If you did, and there are no excess wear or mileage fees owed to the leasing company, you should get the security deposit back at the end of the lease.)