I want to know the full story on a car lease

The Avalon is the highest end Toyota there is. Next step is Lexus. To drive an Avalon is going to cost you. Simple as that. I wish I could afford one. $440 a month is reasonable.. but leasing is not a good idea in my opinion. I leased a Ford truck once, and all is well and good until the lease is up... then you have to give it back and all the money you have put out is very nearly like rental. Money and car both gone.

I hate leasing...

Yep, joemom, I agree. I financed my car to buy but paid it off in 18 months. I saved maybe $5000 in interest, as painful as it was on me financially to pay it off early.

I hear you, I have never lease a car (Rent) and I never will..

When you lease a car you're paying down the depreciation of the car in the first three years. Most people lease cars because they want to get a car that they might not otherwise afford. This does not work for everyone. You have to be very careful and understand how it might benefit you. In many cases , you wind up paying top dollar. The only benefit to leasing is if you intend to keep the car and refinance it later. You could look at it this way, you're buying down 3/5 of the car and the lease will establish a set price for you to purchase the car at the end of say three years. The advantage is that you've had the car for the first three years and you know how it's been treated. If you have a business and can write off the expenses as a legitimate business expense, it further reduces the total cost of the car. Finally, ask them what the cost factor is, this is the percentage of the money they're loaning you to finance the car. They will tell you this is a low number, usually around .00824 or something like that. However, to get the real annual percentage on the money you're paying, you have to multiply this cost factor by 2400. That will tell you the real interest rate. Look, cars depreciate, that's what they do. If you purchase a car, it's going to depreciate just as fast as the leased car. If just depends upon how you manage money and if driving a new car is important to you. Finally, if you drive a lot and put on many miles, a lease is generally not a good idea. Why? You might not really like the car and want to turn it in at the end and then you'll have way over the miles allowed. Usually they allow 12,000 per year. You can negotiate for a larger mileage allowance, but, your payments will go up. It's all arithmetic, no magic here on lease or buy. Choose a car that has a good resale value, it helps. Finally, if you can, find a credit union to finance your car, they offer the best rates and simple interest payback. You don't want to get a loan that has all of the interest paid first before your principle. Purchase or lease a car that you can afford, remember, these are all depreciating assets. Once your car is paid for keep it for 10 years or more, it will be a better investment that way. Good luck.

When you lease and just decide to return the car, it's exactly like a rental. Also, be careful not to exceed the mileage allowance. Usually there's only two things you can do, pay the excess fees or sometimes they'll offer you to turn in the car with no penalty in exchange for signing a new lease.

Buy used. Let someone else take the high depreciation of those first 2-3 years. Leasing only makes sense if you have a business and can take the payments as an expense.