Tips on Buying Cars: Lease vs buy, mileage limit, mileage charges

Question
Jeff,

My wife is going to need to replace her vehicle of 12 years soon.  We don't particularly want another large vehicle payment but she wants a new car and another SUV to replace her existing one.  Leasing certainly provides a more affordable monthly payment but having never leased a car before can you provide a quick snapshot of the pros/cons of leasing and whether you would ever suggest it to a friend (we don't have a business we can leverage the lease against).

Tks very much!

Answer
I've been leasing new vehicles since 1983, and I don't see any "cons;" the problems with leasing arise when people don't realize what they're getting into.  Excess wear & tear and mileage charges, for example.  If you take reasonably good care of a car, and don't exceed the mileage limit by a drastic amount, then you have nothing to worry about.  But abuse the vehicle, or put double the miles on that you're allowed, and you're going to be paying a big chunk at the end.  Leases offered by the manufacturer are usually a safer bet, in that they want you to turn the vehicle in at the end and get another new car.  Bank leases tend to have more (and higher) end charges, because they have no vested interest in your getting a new vehicle, but they sure don't want to have to pay a lot of money to recondition a vehicle you haven't taken perfect care of.  

Before you lease, get a copy of the lease contract from the dealer before you even negotiate a deal, AND READ IT TOP TO BOTTOM, FRONT TO BACK.  The dealer is required by law to furnish a copy if you ask for it, so don't be shy.  Make sure you understand EVERYTHING in the contract before you sign.  I happen to think Ford Credit's is one of the better ones; plain language and easy to follow the terms they're laying out.  If I haven't answered your questions satisfactorily, please don't hesitate to ask any follow-up questions.