Leasing a Car: Getting Started
With the cost of cars today, you may consider financing or leasing your next car. If you do, here are some things to keep in mind.
Before you lease a car, determine how much you can afford. According to the Federal Trade Commission, look at your financial situation to make sure you have enough income to cover your monthly living expenses. You may want to use the “Make a Budget (opens new window)” worksheet as a guide.
Should you take on a new monthly payment? Finance or lease a car only when you can afford to take on a new payment. Saving for a down payment or trading in a car can reduce the amount you need to finance or lease, which then lowers your financing or leasing costs.
The most common type of auto lease is a closed-end lease. With a closed-end lease, you may return the vehicle at the end of the lease term, pay any end-of-lease costs, and walk away.
The best return for your money, is to try to lease a car soon after the model comes out.