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Though insurance standards vary depending on the leasing company, they usually include comprehensive and collision coverage.

It could be a good idea to spring for gap insurance, too, though some lease agreements include it at no additional cost (it’s a good idea to ask whether it’s included).

The actual amount of cash you’d need to come up with can depend on several things though, including your credit scores.

For example, someone with low credit scores who wants to finance a more expensive vehicle would likely have to come up with a larger down payment.

You may have some additional expenses to cover before returning the car, since you’ll be expected to fix any excessive wear and tear.

That could include damages ranging from a tear in the upholstery to a scratch on the bumper, depending on the specifics of your lease agreement. If you live in a crowded city or have a long commute, you may be at risk of putting more wear and tear on your car.

Personal finance expert Erica Sandberg encourages potential lessees not to overlook this part.

“Leasing can be a cost-effective alternative” to buying a car, she says, “but remember that you’re [potentially] putting down-payment money toward something you won’t own.” While a bigger down payment might be wise if you’re buying a car, that doesn’t necessarily apply to leasing.

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Leasing may require a down payment too — especially if you’re interested in negotiating the lowest possible monthly payment.If you can secure solid lease terms, you’ll want to consider keeping your down payment as low as possible.In order to lease a car, you may be required to make a down payment.The cost of repairs can hit both car buyers and lessees.Cars are typically leased for three years, so if you lease a brand-new vehicle it will likely be under warranty for the duration of your lease.

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