In these troubled economic times, auto manufacturers are offering more and more cheap, subsidized leases to keep their products moving in the marketplace. And many consumers are responding by leasing a new car: Leases now make up close to one in five new car acquisitions. But that also means many first-time leasers are discovering the hidden pitfalls of leasing.

One of the biggest drawbacks is the failure to consider the costs of leasing a new vehicle. A key reason why people lease a car is “to get more car than they could afford to buy.” What many discover after the fact is that possessing that higher-end car adds expenses. For instance, car leasing website says more people experience “leasing remorse” today because they fail to figure in their new car’s effect on their auto insurance premiums. Leasing contracts frequently require relatively high levels of insurance coverage that are beyond what many people would have for cars they own. 

Because of these unanticipated higher insurance premiums, a significant percentage of lease customers opt to escape their leases early. says the number of people escaping a lease for that reason will account for 4.5 percent of transactions this year, up from 2 percent in previous years.

“In a struggling economy people tend to be fixated on the car’s monthly payment and nothing else,” says Sergio Stiberman, CEO and founder of

The solution?

Be certain you’ve researched not just the monthly payment, but also the overall ownership costs associated with a new car -- insurance, fuel, oil, maintenance and repairs -- before you sign up for a lease. Also make certain you understand the cost of the insurance coverage you’ll be required to carry under the terms of the lease.



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Driving Today Auto Review - Auto Leasers Remorse on the Rise