When you lease a car, you are theoretically paying the finance company for the depreciation on the car during the term of your lease.

The actual monthly payment depends on the price of the car (which you can negotiate), how much you put down, the length of the lease, the finance charge, state and local sales tax, the expected value of the car at the end of the lease, and the value of any car you trade in.

You also will be required to buy gap insurance, which covers the gap between what you owe the finance accompany and what your auto insurance company would pay if your car was totaled or stolen.

When you sign a lease, be prepared to pay the first month’s payment, a security deposit, tax on a down payment if you made one plus state or county license and registration fees. At the end of the lease, you will be charged a disposition fee and receive all or part of your security deposit back. You must buy your own auto insurance, like you would if you owned the car.

Federal law requires the dealer to give you a Federal Consumer Leasing Act Disclosure that breaks down the amount due at signing, monthly payment and other charges fees, and explanations.

For more on auto leasing, see http://www.leaseguide.com/ or http://www.federalreserve.gov/pubs/leasing/resource/default.cfm.