The most important thing to remember is that you do not own vehicle. You get to use it but must return it at end of lease unless you choose to buy it.

Up-front costs may include first month's payment, a refundable security deposit, taxes, registration and other fees and other charges.

Monthly lease payments are usually lower than monthly loan payments because you are paying only for vehicle's depreciation during lease term, plus rent charges (like interest), taxes and fees.

You are responsible for any early termination charges if you end lease early.

You may return vehicle at lease-end, pay any end-of-lease costs and "walk away."

The lessor has risk of future market value of vehicle.

Most leases limit number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will likely have to pay charges for exceeding those limits if you return vehicle.

Here are some useful tips on reducing insurance costs:

Shop Around

Although it may sound an obvious thing to do, you will be surprised at how many people just renew their policy without comparing prices. It'll take some time, but could save you a good sum of money.

Check consumer guides, insurance agents and online insurance quote services. Ask friends what they are paying for their policies. This will give you an idea of price ranges and tell you which companies have lowest prices. But don't consider price alone. The insurer you select should offer a fair price and deliver quality service.

Raise Your Excess Amounts

Excess amounts are amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to terms of your policy. The higher your excess, more money you can save on your premiums.

Buy your home and car policies from same insurer