It’s possible to get out of a lease, but you will be required to pay substantial fees and penalties.

Determine the monthly payment you can afford and the amount you can put down on a lease agreement. Note that increasing the down payment on a lease will have a more dramatic effect on your monthly payment than the same amount would on a car purchase. When leasing, you must also consider the end-of-lease agreement costs.

It is possible to lease a used vehicle. Because of depreciation, your monthly payments could be very reasonable. However, the risk to consider is the possibility of service problems with cars over three years old.

The initial down payment is typically equal to three monthly lease payments, but you can find specials that require less.

A close-end lease is a personal vehicle lease that contains typical options and charges. Open-end leases are commercial business leases in which the value of the car is determined at the end of the lease contract.

For the duration of a typical three-year lease the vehicle will be covered by a manufacturer warranty. The responsibility of any maintenance that does not fall under the warranty should be covered in your lease agreement.

It is the car’s agreed-upon value at the end of your lease. The residual value is determined by the number of years and mileage put on the car.

A car lease is considered a debt, like a loan. The car’s residual value may or may not be considered as part of the debt (depending on the credit company).