• Be leery of widely different residual values. An unrealistic high residual could be the tip-off the lessor is tempting you with an unreasonably low monthly payment and will hit you at the end with high excess wear-and-tear charges.
  
  
• Do not agree to or sign a lease solely on the basis of the monthly payment. Some lease salespeople can only discuss a lease in terms of a monthly payment and often have little knowledge of anything beyond the basic concept of leasing. There can be great leeway to manipulate other items without giving you the details.
  
  
• Be sure you determine whether the annual mileage limit is appropriate for the amount of driving that you do. Most leases provided for 12,000 to 15,000 per year. If you go beyond the limit in the lease, you could be charged for the additional miles; if you drive less, you will be paying for miles you never drove.
  
  
• Make sure the lease defines excess wear-and-tear. You could, for example, have to pay for a big repair bill at the end the lease. You may end up paying for such things as cigarette burns, dents and dings and nicked glass.
  
  
• Determine exactly what you are responsible for if you want an early termination. Once you have taken possession, the vehicle depreciates quickly. You will have to make up the difference if you want to get out of the lease early. Some lease agreements require you to make all the remaining payments if you want to end the lease early.
  
  
• Check to see if gap insurance is included. This insurance will pay off the difference between the balance you owe on the lease and the residual if the vehicle is stolen or destroyed, a sum that can total several thousand dollars.
  
  
• Does the manufacturer's warranty cover the length of the lease? If not, you should seriously consider an extended service contract for the period between the end of the manufacturer's warranty and the end of the lease.

Do these cautions mean you should not lease? No! But it does mean, however, that as with any financial transaction, you should deal only with reputable firms such as one of the members of The OVLA who subscribes to The OVLA Code of Ethics and be informed.

Lease Dictionary - Find Out What All The Terms Mean Here

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What Is Vehicle Leasing?

Is Vehicle Leasing Right For You?

What Questions Should You Ask?

What Are Your Responsibilities Under A Lease Agreement?

What Should You Look For In A Vehicle Lease Agreement?

Be Cautious!

Are There Tax Advantages To Leasing A Vehicle?

How To Go About Leasing A Vehicle.

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