You've seen the jokes and movies starring that caricature of a slick car dealer. He is the one that will try just about any trick to make a buck. It's a shame that off screen and in real life, these shady characters are all too common in every day leasing scenarios. It's not uncommon for unwitting consumers to get so caught up in the new car excitement, and so overwhelmed by the terms and processes, that they are happy to leave the details to the dealer's "expertise".

Automobile dealers and leasing agents have more than a few tricks up their sleeves to pull in bigger profits. By watching for these tactics, you can save yourself a bundle:

"Leasing Beats Buying"

Sly marketers often prey on the emotions of the buyer in order to sell the product. Automobile dealers know that most consumers don't have a great deal of disposable income, so they'll use the promise of lower monthly payments to lure customers to signing long term agreements. These contracts can stretch the buyer's commitment to five years or even more, with the promise of lower payments. These lengthy contracts pose danger to the average buyer, for a couple of reasons.

First, when you drive a vehicle for a longer period of time, it will naturally accumulate more mileage. Most drivers can easily put 80,000 miles on a car over the course of five years, but this exceeds the 15,000 per year mileage limit that is written into most leasing agreements. Remember that you are obligated to pay for ever mile over the limit, and at 20 cents per mile, those extra 5,000 miles can add up to a substantial lease-end bill. Extended leases are also problematic because of the amount of wear and tear that will invariably affect your vehicle. Most warranties cover three years, but if you have a five year lease, you'll be responsible for any repair costs that are incurred over the remaining two years.

"Lease at Only Three Percent!"

Always read the fine print in every lease advertisement. The dealer or leasing agent is not quoting the actual lease rate that you will be paying, but simply giving you the lease money factor. It's similar to an interest rate, but not exactly the same. The lease money factor is used to determine your monthly payment, but you can calculate a more accurate rate by multiplying the money factor by 24. For example, the "low" lease rate of 3% is actually the money factor. When multiplied by 24, the product is 7.2%. This is the annual interest rate that you may unwittingly agree to pay on your lease contract.

"No-Hassle Early Termination"

Whatever. There is no easy way to terminate, or end, a lease. Your automotive lease is a legal agreement, and you are bound by the law to meet your obligations. Even though your dealer is well aware that your situation can change, and that you may want or need to opt out early, there is no easy way to end it. When you sign a leasing agreement, you are required to make the monthly payments for the full term of the lease, and there is little chance of getting out early. Hefty financial penalties are imposed upon those who default on payments or terminate the agreement before the end of the scheduled lease term.

These are all common and effective tactics that leasing agents use to bait and hook customers every day. So, how can you protect yourself from walking in to one of these traps? Education is your best defense. Learn as much as you can about the leasing process. Understand the terms used by dealers. Estimate the payments on your own, bring the calculations with you, and then crunch numbers along with your dealer to be sure that you clearly understand how he or she arrives at a monthly lease payment.

Don't sign anything until you have a clear understanding all the terms, and be certain that your dealer's numbers are close to or the same as yours. You're in charge, so don't let your dealer pressure you into signing.

When you're dealing with slick sellers, knowledge is power. Learn as much as you can, be confident and you will have the upper hand in the situation. Only then will you be able to avoid falling for the typical dealer tactics, and only then can you negotiate the best possible deal.