It's not as easy as a dollar down, a dollar a week and you own it – or is it? To lease a car or buy a car is not really the question either...the bottom line is "What's it really going to cost me?"

What is a Car Lease?

Simply put, a car lease is a contract in which you agree to make monthly payments for the use of a vehicle for a specific amount of time. Any lease agreement is subject to certain terms and limitations and a car lease usually runs for a 36 month period, though there are some exceptions.

Should You Make a Bigger Down Payment on My Car Lease?

You can always ask the dealer to limit a down payment, but the more money you put down, the lower your monthly payments will be. At the end of your lease agreement you can drive away with a new car – and a new lease agreement.

According to LeaseTrader.com, "Money you put up front that is applied to the final purchase price. A large cap cost reduction (down payment) will, of course, reduce the monthly payments, but it will also negate one of the biggest advantages of leasing...Since you are putting a 'down payment' on something you do not own, a [down payment] is really just a fancy word for a fee." It's kind of like putting new carpet in an apartment you are renting!!! Don't spend money on something you don't own.

Further On – Down the Line on Your Car Lease

At the end of the road, many people who lease cars are faced with hidden fees, charges (and laws) that aren't so clearly "defined" at first. Take the Lemon Law. It does not apply to lease vehicles in most states!

You expect some types of fees and charges on your car lease; amortized amounts such as taxes, charges for service contracts and those are usually included in the base monthly payment. LeaseTrader.com has a an A to Z Leasing Glossary full of car leasing terms and definitions that will prove to be most valuable, whether you choose to lease or buy your next car.

You may be surprised that the monthly car lease payments may not include any sales tax. Or you may be charged a fee for every mile driven over the pre-set limit, up to 15,000 (or more) miles per year. Do take into consideration the amount of miles you drive in a year before leasing. Then there's auto insurance. You may be compelled to pay a higher rate for auto insurance. Although, the mandatory insurance (collision) will cover repairs but does not cover lease payments, taxes and fees. GAP insurance is included on every lease; by federal law (learn more about GAP insurance by reading our article, GAP Insurance.

What to Do? Should I Buy or Lease a Car?

So if the question still remains, "Should I buy or should I lease a car?" LeaseTrader.com has another option: Taking over someone's existing car lease. "Save thousands of dollars simply by taking over someone else's monthly lease payments for the time remaining on the car lease." Leasing or financing a car both have two sides to consider – the advantages and disadvantages. Study both sides and then make the choice that fits your needs and lifestyle. And before you answer the question about buying or leasing, log onto LeaseTrader.com and learn more about this creative concept.

Also, read the fine print in the car leasing contract before you do either!