Under the federal Consumer Leasing Act, you, the consumer, have a right to information about the costs and terms of a vehicle lease. This information will help you compare lease offers and negotiate a lease that best fits your needs, budget, and driving patterns.

The most common type of vehicle lease is a closed-end lease. With a closed-end lease, you may return the vehicle at the end of the lease term, pay any end-of-lease costs, and walk away. The following compares common terminology between leasing and buying a car as well as things to consider when leasing a car: 

Consider beginning, middle and end-of-lease costs

At the beginning of the lease, you may have to pay your first monthly payment; a refundable security deposit or your last monthly payment; other fees for licenses, registration, and title; a capitalized cost reduction (like a down payment); an acquisition fee (also called a processing or assignment fee); freight or destination charges; and state or local taxes.

During the lease, you will have to pay your monthly payment; any additional taxes not included in the payment such as sales, use, and personal property taxes; insurance premiums; ongoing maintenance costs; and any fees for late payment. You'll also have to pay for safety and emissions inspections and any traffic tickets. If you end your lease early, you may have to pay substantial early termination charges.

At the end of the lease, if you don't buy the vehicle, you may have to pay a disposition fee and charges for excess miles and excess wear.

• the agreed-upon value of the vehicle--a lower value can reduce your monthly payment

• up-front payments, including the capitalized cost reduction

• the length of the lease

• the monthly lease payment

• any end-of-lease fees and charges

• the mileage allowed and per-mile charges for excess miles

• the option to purchase either at lease end or earlier

• whether your lease includes "gap" coverage, which protects you if the vehicle is stolen or totaled in an accident.

Ask for alternatives to advertised specials and other lease offerings.

When you lease a vehicle, you have the right to:

• use it for an agreed-upon number of months and miles

• turn it in at lease end, pay any end-of-lease fees and charges, and "walk away"

• buy the vehicle if you have a purchase option

• take advantage of any warranties, recalls, or other services that apply to the vehicle.

You may be responsible for:

• excess mileage charges when you return the vehicle. Your lease agreement will tell you how many miles you can drive before you must pay for extra miles and how much the per-mile charge will be.

• excess wear charges when you return the vehicle. The standards for excess wear, such as for body damage or worn tires, are in your lease agreement.

• substantial payments if you end the lease early. The earlier you end the lease, the greater these charges are likely to be.

For more information . . .

Contact your dealer, manufacturer, leasing company, or financial institution for more information.

The federal Consumer Leasing Act and some state laws may provide you with additional consumer rights not covered in your lease agreement. For information on these laws, contact your state's consumer protection agency or Attorney General's office. You also can contact: