You've found the car of your dreams and decided that leasing is the best option for you. But before you sign on the dotted line, make sure you fully understand all the terms and conditions of your lease agreement. Knowing what to ask can make all the difference. Here are some helpful tips:

Mileage Options. Lessors typically offer allowances that range from 10,000 to 15,000 miles a year.

Tips: Before deciding on a specific lease, calculate how many miles you drive each year and request that your lease be written for that number of miles.

It's generally less expensive to "buy" additional miles up front, than pay for them at the end of the lease.

Early Termination. There are typically significant costs associated with ending a lease before its scheduled maturity date. In general, you are liable for the remaining payments plus residual value, less the current value of the vehicle.

Capitalized Cost. Prior to entering a lease contract you'll want to negotiate the "cap cost"the automobile's selling price plus any fees and taxes minus any down payment or trade-in allowance.

Tip: You can work with the retailer to negotiate the cap cost for a lease just as you can with a purchase price. Remember, as the cap cost is reduced, your monthly payment will decrease.

Options At Lease End. Confirm that you are getting into a closed-end lease which means you will not be at risk if the residual value of the car is lower than originally estimated.

Tip: Avoid surprises by looking for a well-written lease with all end-of-term costs listed and described.

Residual Value. Look for cars with a high residual value. A higher residual value or resale value will produce lower monthly lease payments.

For A Leasing Company. There are two options to consider captive or independent financing.

Tip: A captive company (the automobile's manufacturer) knows its customers and products better than a third-party financial source (a bank). It may offer better services and financial products tailored to specific customer needs.