Should I Lease a Vehicle?
If you are considering leasing, There are several
things to keep in mind when considering leasing
a vehicle, such as a new Toyota car. The monthly
payments when leasing a car are lower than when
buying a car. This is because at the end of the
lease, you are expected to return the car to the
dealer-unless the lease allows you to purchase
the car. As with anything else, always compare
lease offers and terms, including mileage limits,
and take into consideration how long you will
mostly likely want to keep the vehicle.
Mileage limit is an important factor when leasing
a car-most standard leases are calculated based
on a specified number of miles you can drive,
typically 15,000 or fewer per year. a higher mileage
limit may be arranged, but this will affect your
monthly payment. If you exceed the mileage limit
set in the lease agreement, expect to pay additional
charges when the vehicle is returned to the dealer.
Excess wear and damage, and missing equipment
is your responsibility on a leased vehicle. You
must also service the vehicle in accordance with
the manufacturer’s recommendations, and
maintain insurance coverage that meets the manufacturer’s
requirements.
"Keys to Vehicle Leasing,"
a publication of the Federal Reserve
Board, contains more information about leasing.
Request a copy from:
Publications Services
Board of Governors of the Federal
Reserve System
Mail Stop 127
Washington, DC 20551
Or see it online at: www.federalreserve.gov/pubs/leasing
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