However, your credit background is checked extensively when you apply for a lease. A spotty credit history will usually disqualify you from a lease agreement. Some people choose to pay a down payment since it lowers your monthly payments by reducing the capitalization cost of the lease. The right insurance is very important when you lease an automobile or else you could be stuck with the cost of the lease and the residual if the car is stolen or a total loss in an accident. You should seriously consider investing in gap insurance .
Gap insurance covers the rest of the lease and the residual cost of the car in case of a total loss.
Standard insurance is also necessary since you are responsible for repairs and maintenance while you are driving the car. Return to Top A Final Note Look at more than at the low monthly payments before entering into a lease. Make sure you have considered all of the fees and stipulations described above, and figure out what the lease would really cost you per month. Leasing companies are required by law to disclose in TV and print advertising all required fees and payments, as well as the type of lease it is. Some ads now refer consumers to a toll free number or printed ad for complete details on a lease.