You need a new car and are considering leasing your next vehicle. There are some advantages to leasing a new vehicle rather than financing and buying one, such as lower monthly payments. But before you decide on a lease, there are some things you need to consider:

Up-front Costs. The up-front costs usually include the first month’s payment, a refundable last month’s payment as a security deposit, a capitalized cost reduction which is like a down payment, taxes, registration and other fees.

Termination Charges. There may be early termination charges if you end your lease early.

Mileage. Most leases limit the mileage you may put on the vehicle, usually a specific number of miles per year. If you exceed your limit you will have to pay charges if you return the vehicle. You can agree on a higher limit but it will result in a higher monthly payment.

Wear and Tear.If you exceed what is set as normal wear and tear limits during the lease term, there will be extra charges when you return the vehicle. Limits on wear and tear will be in the lease contract.

End of the Lease. At the end of the lease, you may lease another vehicle or finance the purchase of the existing vehicle. Either way, you will have a new payment.

The depreciation and market value of the returned lease vehicle is the risk of the lessor, as they have always retained ownership of the vehicle. The down side is that you have no equity in the vehicle and now bear the costs of replacing or buying it.

According to the results of a survey by Runzheimer International, Detroit is the most expensive city in which to own a car. Insurance costs were the main reason for the high cost of car ownership in Detroit.

The survey took into account differences in insurance and maintenance costs to compare costs of owning a vehicle in different US cities.

See the list at Costliest Car Ownership Cities.

Ford Motor Company now reports its losses in the second quarter at $254M, double the figure they originally reported, $123M.

Ford has been struggling. In January they announced cutbacks in jobs and closings of facilities. On top of that, its foreign motor group continues to lose money where Ford had hoped to begin to see profit. Jaguar, especially, has been disappointing in sales.

Is it coincidental that the other big American car manufacturer, GM, has also been having its financial woes?

I think Americans want to see a turnaround for both Ford and GM. Americans want to buy domestic and when the product is superior and reliable, they will. Manufacturers need to re-tune their approach to the American market. Ford’s Focus, for instance, immediately popular and gaining good reviews, was plagued by recalls. Recently, Ford has had to recall 1.2 million trucks and SUVs due to fire hazards.

In July, for the first time, Toyota outsold both Ford and GM. Rising fuel prices are probably the key to the increase in Toyota sales in the US.

Ford announced on Wednesday the hiring of Kenneth Leet, former Goldman Sachs banker to be a strategic advisor to Ford CEO Bill Ford.