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At some point in time, everyone decides to purchase a automobile. When you go to a dealership to pick out which vehicle you want, this is only part of it. Once you decide on a vehicle, you must decide whether you would like to buy or lease. There is many different options you can choose. I suggest you research every option before you choose. Be sure and choose which one fits your budget and needs most. The dealership may make a lease sound much better than what it really is.

Here are a few things to watch out for with a lease.

1. See how many miles you are allowed each year. Most leases do not offer many miles. The price for every mile over will astound you.

2. Try not to go over two years on the lease.

3. Be sure to get what you will have to pay for the vehicle at the end of the lease, if you plan to buy.

4. Make them show you how much of the monthly payment goes to the leasing company and how much goes to the principle cost of the vehicle.

5. Make sure where your security deposit up front goes to.

These are a few things to watch out for with a lease. Now I want to share my leasing experience with you. In 1998, my wife and I decided to lease a new vehicle. The low down payment and much lower payments made our minds up. We didn't really research the lease at all, we took the dealerships word on it. After about a year, I lost my job and we could not pay the lease payment. We decided to take the vehicle back to the lot. They had told us this would be fine and we would not be penalized. A few weeks later we received a letter in the mail from them. The letter stated that they had sold our vehicle for $12,500.00, leaving us owing them nearly $8,000.00. Even though they had guaranteed that if we leased the vehicle, and wanted to trade it in at the end of the lease, it would be valued at $21,000.00. So we ended up without a vehicle and still having to pay for it. I suggest you be very careful with a lease plan.

Maybe a lease is a good thing for some people. I suggest you really look into it before, don't jump into one. The payments might be cheaper but in the long run you will end up paying. I hope this has been helpful to anyone trying to decide between buying and leasing.