It varies by state. Many states tax each monthly lease payment, while some tax the full vehicle price or the total of payments upfront, and some also tax down payments or rebates. A few states have no sales tax at all. That means the same lease can cost noticeably different amounts in different places. Check your state's revenue department or DMV, and ask the dealer to show how tax is calculated on your lease.

Typical lease fees include an acquisition fee from the lessor, a dealer documentation fee, title and registration, sales tax as your state requires, and a disposition fee at the end if you return the car. You might also face excess mileage or wear charges and an early termination fee. Ask which fees are government charges and which are dealer fees, and get all of them in writing before signing.

You can usually apply a trade-in to a new lease. Positive equity from your trade typically works like a down payment, called a capitalized cost reduction, which lowers your monthly payment. Negative equity can be added to the lease, raising your payment. Because leases are paid down only partway, putting large amounts of trade equity into a lease means you could lose it if the car is totaled or stolen early. Ask how the trade is shown on the lease worksheet.

Ask for the capitalized cost (selling price), the money factor, the residual value as a percentage and dollar amount, the term, annual mileage allowance and per-mile overage charge, the amount due at signing with a breakdown, acquisition and disposition fees, and whether GAP is included. Having all these in writing lets you compare offers and check the math. OffLot's lease estimate shows the payment, due at signing, residual, depreciation and rent charge.

It depends on how you drive and what you value. Leasing usually means lower monthly payments, a new car every few years and warranty coverage, but you build no equity and face mileage and wear limits. Buying costs more monthly but you own the car and can drive it as much as you like for years after paying it off. On OffLot, Build your deal lets you compare buy, lease and cash for the same vehicle.

Leasing tends to suit people who drive a predictable, moderate number of miles, like having a newer vehicle with the latest tech and safety features, want lower monthly payments and prefer to avoid long-term repair costs. It's less suited to high-mileage drivers, people who modify cars, those with rough-use situations like pets or heavy hauling, and anyone who wants to own a car long-term. Your budget and habits matter more than any rule.