Quick Consumer Guide Comprehensive Consumer Guide Shopping Checklist Sample Leasing Form

Disclaimer Glossary Guide for Educators

This quick consumer guide is for a closed-end lease, the most common type of vehicle 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 sample leasing form shows the types of information the dealer or leasing company must give you before you sign a lease. The glossary gives definitions of terms associated with vehicle leasing.

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Leasing is different from buying.
Here's how . . .

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Consider beginning, middle, and end-of-lease costs

During the lease, you will have to pay your monthly payment; any additional taxes not included in the payment such as sales, use, and personal property taxes; insurance premiums; ongoing maintenance costs; and any fees for late payment. You'll also have to pay for safety and emissions inspections and any traffic tickets. If you end your lease early, you may have to pay substantial early termination charges.

At the end of the lease, if you don't buy the vehicle, you may have to pay a disposition fee and charges for excess miles and excessive wear.

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You can compare different lease offers and negotiate some terms. Consider . . .

• The agreed-upon value of the vehicle--a lower value can reduce your monthly payment
• Up-front payments, including the capitalized cost reduction
• The length of the lease
• The monthly lease payment
• Any end-of-lease fees and charges
• The mileage allowed and per-mile charges for excess miles
• The option to purchase either at lease-end or earlier
• Whether your lease includes "gap" coverage, which protects you if the vehicle is stolen or totaled in an accident.

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Know your rights and responsibilities

• Use it for an agreed-upon number of months and miles
• Turn it in at lease-end, pay any end-of-lease fees and charges, and "walk away"
• Buy the vehicle if you have a purchase option
• Take advantage of any warranties, recalls, or other services that apply to the vehicle.

• Excess mileage charges when you return the vehicle. Your lease agreement will tell you how many miles you can drive before you must pay for extra miles and how much the per-mile charge will be.
• Excessive wear charges when you return the vehicle. The standards for excessive wear, such as for body damage or worn tires, are in your lease agreement.
• Substantial payments if you end the lease early. The earlier you end the lease, the greater these charges are likely to be.

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For more information . . .

Contact your dealer, manufacturer, leasing company, or financial institution for more information.

The federal Consumer Leasing Act and some state laws may provide you with additional consumer rights not covered in your lease agreement. For information on these laws, contact your state's consumer protection agency or attorney general's office. You also can contact

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"Keys to Vehicle Leasing" brochure

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The following agencies and organizations cooperated in preparing this information: