What are the initial (up-front) costs of leasing a car?
In deciding whether to lease or buy, find out what your total initial costs will be. This is part of the total dollar amount you will arrive at to compare with the cost of buying. “Initial costs” are the down payment you must come up with when you lease a car. They include the security deposit, the first and last lease payments, the “capitalized cost reductions,” the sales taxes, title fees, license fees, and insurance. With a lease, the initial costs usually total less than the down payment needed to buy a car. Further, all initial costs are subject to negotiation during your bargaining with the dealer. The Federal Consumer Leasing Act require the Lessor to disclose all up-front, continuing and final costs in a standard, easy-to-read format.
