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Leasing a car, an SUV, or a pick-up truck can be the perfect choice for many people. Monthly payments are often less than those for purchasing a vehicle, drivers can get a brand-new car every couple of years, and concluding the lease can be as simple as turning in the keys.
But a number of costs and fees, not to mention the terminology, can make the prospect daunting and confusing. Anyone considering leasing a vehicle needs to read the fine print, understand the lingo, and get the answers to lots of key questions—what do the various costs mean, how are they calculated, what’s reasonable and what’s not, and can they be negotiated?
The difference can mean finding a great deal or getting stuck with a sour deal that’s overpriced, cumbersome, or just plain upsetting. Save yourself the hassle and headaches by learning to understand how car leases work, and how they can work best for you.
CoPilot compiled a list of five essential costs to consider, in addition to upfront costs, when thinking about leasing a car. These numbers help estimate the true cost of a lease, as well as any fees that may be accumulated during the leasing period.