Leasing a car may make sense for you depending on how good a deal you can strike with the dealer, how many miles you put on a car, how much wear and tear you put on a car and what you will use the car for. As with buying, once you sign the contract you are responsible for the payments.

To follow are some tips on getting the best deal possible:
1. If you intend to ultimately own the vehicle you are leasing, you will probably get an open-end lease, in which you bear the risk that the car will have a certain value (called the estimated residual value) at the end of the lease. The monthly payment is lower because of this risk factor. However, consider purchasing the vehicle on credit rather than leasing because it is often more expensive to lease and then purchase than it is to have purchased the vehicle outright.

2. Request disclosure of the capitalized cost and finance rate. Negotiate for the lowest capitalized cost and financing rate possible.

3. Obtain full accounting of all rebates, cash down, trade-in value, and all other payments applied to the lease.

4. Do not purchase extended warranties that duplicate the manufacturer's warranty or provide coverage beyond the lease term of the vehicle.

5. Compare total cost to lease or purchase the vehicle.

6. Know the value of your trade-in vehicle. Insist that your trade-in be accounted for in the lease transaction.

7. Early termination of a lease is an expensive proposition-you can't just turn in the car and walk away.

8. Do not allow the dealer to "pack" extra products and services such as extended service contracts and credit and disability life insurance into your lease payment without your agreement to do so.

9. Do not sign a lease agreement until you have read and understood all of its terms.

Resources for New and Used Vehicle Pricing