How Much Does Leasing Really Cost You | Money Minute

Leasing a car is really attractive at first glance, especially when the monthly payment is lower than buying

But the real cost of leasing goes beyond that number. The upfront fees can be more than you bargained for in some cases, to the tune of $1,000 or more

since it can include the first month's payment, taxes, registration fees, a security deposit, and dealer fees

Then there are monthly costs to plan for, like insurance, gas, and maintenance

Plus, full coverage insurance is often a requirement which can add to your budget

And when the lease ends, there may be more fees waiting. You could owe a disposition fee, excess mileage charges, or wear and tear costs if the car has more damage than expected

Ending your lease early can also be costly. One more important thing to remember, when you lease, you don't own the car

That means your payments aren't building equity. Leasing may help lower your monthly payment, but it's important to look at the total cost

up front, monthly, and at the end before you sign on the dotted line