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.

Gas prices are dropping all over. As the price of gas plummets, one of the biggest cash outflows from the average consumer’s wallet is predicted to slow to a trickle.

The lowest gas price in the country, as of this writing, is in Branson, Missouri at $1.85 per gallon.

Even at that low price, it may not be economical for everyone to drive to Missouri for gas. To check for the lowest prices in your area, check out this nifty site at MSN. Just input your zip code for a list of the prices at local gas stations.

Gas Prices – MSN Autos

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.