Tip of the Week: Car Leasing (11/9/98)

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	Leasing's Fine Print Financial Tip of the Week by Deloitte & Touche OnLine November 9, 1998

Read the agreement carefully before you lease a car.

While automobile leasing can be a sensible alternative for consumers who want to drive a new car but avoid the massive monthly payments associated with buying, consumer advocates warn that an eye for the small print up front to avoid nightmarish headaches down the road.

Although returning a vehicle at the end of its lease may seem like a drop-off-the-keys done-deal, complicating factors such as excessive mileage, excessive wear and tear and ending a lease early can lead to unanticipated hassles and considerable costs. Although these costs are delineated in the lease agreement, there can be a degree of subjectivity in assessing them. For example, different dealers may assess damage differently. Because most leases allow the lessor to return the vehicle to any authorized dealer, it may be worthwhile for a driver to obtain written estimates of anticipated repairs from more than one dealer.

To learn more about the costs, rights and responsibilities associated with leasing a car or truck visit the Federal Reserve Board web site or write to the Board of Governors of the Federal Reserve System, Washington DC 20551, or call (202) 452-3244 and request Keys to Vehicle Leasing, publication number MS-127.

To learn more about car leasing, see "Plain-English Car Leases" in Personal Financial Advisor.