After you negotiate your contract, when you are asked to sign, make sure there are no blank spaces and that the following information is clearly stated in the contract:
Up–front payments: down payment, security deposit, first month´s payment and acquisition fee (if any);
Number, amount and due dates of your monthly payments;
Total amount of monthly payments over the lease term;
Cost of license and registration fees and taxes;
Gross capitalized cost;
Net trade–in allowance for the vehicle you are trading in on the new leased vehicle;
Capitalized cost reduction (if any);
Adjusted capitalized cost;
Rebates and non–cash credits (if any);
Residual value;
Description either provided, or required, under the lease;
Warranty terms;
Designation of who takes care of the vehicle and pays for maintenance during the lease term;
Standards for wear and tear;
Penalties for early termination and late payments; and,
Whether you can buy the car at the end of the lease term. What is the price if you exercise your purchase option.
Even under recently enacted Federal laws regarding leasing, dealerships and leasing companies are not required to disclose the money factor they use. If you decide you wish to do your own lease calculations, or to check the proposed lease, you must find out what money factor the lender uses to do its calculations. If you ask and the leasing representative refuses to provide this information, simply go somewhere else.
