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one of the most complicated financial decisions that a recent college grad might face is the question of whether to buy or lease a new car because the vocabulary of leasing is different from buying Im gonna in this video take you through the terms that apply to vehicle leasing and compare those to the analogies in vehicle purchase so that you can understand the mathematics and the vocabulary of a typical lease agreement your lease agreement might be different than this one but the terms are going to be very similar were the first things that you need to notice that differentiates leasing from buying is in this one in box 7 the other charges most of the terms up until then are pretty familiar the amount to do at lease signing thats the check that you need to write when you take delivery of the car and theres a breakdown on what the 1035 dollars in this example amounts to then theres the monthly payments this is a 42 month lease and the first payment is due upon delivery of the car s