The concept of leasing is fairly simple, yet many consumers don't completely understand it and are often skeptical, even afraid of it. It is frequently misunderstood as a kind of cheap "rent-to-own" scheme hatched up by clever shysters to separate good people from their money. There are even "experts" who are quick to advise you against leasing because "it's all a scam."

In fact, leasing a well respected financial concept that has long been used in the business world as a smart method of financing buildings, equipment, and vehicles — although it is still relatively new to consumers. Because consumers are still learning about leasing, there have certainly been cases in which their lack of knowledge has been taken advantage of, sometimes fraudulently.

As with any business transaction, the key to successful and intelligent auto leasing is understanding how the process works, and taking the time to properly prepare yourself before making decisions.

Without at least a basic understanding of leasing concepts, knowing how to get a good deal, and knowing how payments are figured; you expose yourself to the very real possibility of making serious mistakes, significantly overpaying, or worse, being cheated.

In fact, you shouldn't even consider leasing unless you have an understanding of these important fundamentals.