4 Dos and Don'ts about Leasing a Car

Have you seen a new car sticker lately? Ouch!

There's almost nothing more discouraging for a new car buyer than the prices listed on the window. One way people avoid that is to lease a new vehicle, but is it right for you? Maybe.

If you drive a lot (or want to keep the car once it's paid off), you might want to buy. On the other hand, if you don't rack up a lot of miles on your car (and you're looking for a late-model vehicle), leasing may be the way to go.

Here's a list of leasing dos and don'ts to help you get your best deal:

• DO read the fine print. Costs can really skyrocket if you're not prepared for the all the costs of leasing – such as down payments, fees for extra mileage and end-of-lease expenses.
• DON'T be fooled by advertisements. There may be more than meets the eye with lease offers that tout very little down and very low monthly payments.
• DO your homework. Leases require multidimensional pricing including monthly payments, finance cost and various fees. The more complex the billing, the more difficult it is to understand how much you're really paying.
• DON'T be afraid to negotiate. Leases are not etched in stone. Check with your bank or go online to find the car's price, but don't assume that the sticker price is equal to the car's value. Bargain with the dealer about the price, the finance rate and the mileage limit. All are within a dealer's ability to adjust.

Remember, this might be a way to avoid the sticker shock, but make sure the option is right for you.