How to lease a car

Leases rarely make sense for individuals unless you own a business, or don’t have the money for the full Beemer payment every month. It is stupid financially, but if you have to lease, read on.

It's difficult to compare prices on a lease, and the financing costs are often exorbetent. Dealers will use up front down payments and fees to reduce monthly payments. Again here, look at how much you will pay over the entire lease term, including up-front, to compare. Remember, when you lease, you are renting, and even though the payments are less, you own nothing at the end.

Mileage is the primary place dealers start licking their lips. Leases usually allow only 15,000 miles a year. If you go over, you are going to pay from 8 to 15 cents per mile! That adds up. Conversely, if you don’t drive much, you are wasting money on the lease as well. When the car is returned at the end of the lease, have it detailed and make repairs. The dealer will ream you on these things if they are not done beforehand. Read the contract very carefully to see who judges the cars condition when it is returned.

Only lease for two or three years. Longer leases force you to hold onto a vehicle you may hate or paying extreme amounts to get out of the lease. Also, if you have an accident, you may owe more than the car is worth, so get gap coverage.