Federal laws (1) require that advertisements accurately represent the products and services being offered, (2) require that advertisers adhere to fair-advertising practices, and (3) include a standard that states that disclosures must be made clearly and conspicuously.

The regulations that implement the Consumer Leasing Act include requirements for lease advertising in any media. If a printed ad includes any reference to the amount of any payment, a capitalized cost reduction (down payment), or other payment required at lease signing or delivery or states that no such payments are required, then the ad must also state the following:

• That the transaction is for a lease
• The total amount due at lease signing or delivery
• The number, amounts, and due dates or periods of the payments
• A statement of whether or not a security deposit is required.

An advertisement for an open-end lease also must include a statement that extra charges--based on the difference between the residual value and the realized value at the end of the lease term--may be imposed at the end of the lease .

States may also impose restrictions on advertising of leases. Check with your state's attorney general's office to find out what restrictions apply.

Finally, many advertisements are placed by manufacturers or regional dealer associations, and individual dealers may choose not to participate in the advertised lease programs. If you negotiate some parts of the lease, the advertised terms and conditions may no longer apply. See the Shopping Checklist for tips on using advertisements when shopping for a lease.

Simple ad

Lease a Brand New Spark EX

This ad simply tells you that you can lease a Spark EX. You would need to gather information on costs and terms from other sources (for example, dealers, automotive publications, Internet information, ratings services, and manufacturers).

More-detailed ad

(National and (or) local ad with federal disclosures)

		Lease a Brand New Spark EX
Only $245 per month for 48 months! $4,095 due at lease signing, includes security deposit, excludes taxes, title, and registration
(1) Lease payments based on a 48-month closed-end lease. (2) Different options, capitalized cost reduction, and (or) term may affect monthly payments. (3) Offered through participating Spark dealers through December 31. (4) Subject to credit approval and availability from existing dealer inventory. (5) See your Spark dealer for details.

(1) Lease payments based on a 48-month closed-end lease.

This is a 4-year lease. If you wanted a shorter term (for example, a 3-year lease), the monthly payments would be different. It's a closed-end lease, which means that at the end of the lease, you can return the car, pay any end-of-lease charges, and walk away.

(2) Different options, capitalized cost reduction, and (or) term may affect monthly payments.

The advertisement doesn't tell what features and options the EX model has. If you want additional options on the car, you should expect to pay more.

If you didn't pay a capitalized cost reduction up front, or if you paid a smaller capitalized cost reduction, you'd probably have to pay the difference as part of the monthly lease payments.

(3) Offered through participating Spark dealers through December 31.

Manufacturers often place ads in media covering multistate regions or the whole country, but not all dealers may choose to participate.

This lease offer is available for a limited time; there may be a special manufacturer incentive or rebate associated with this lease, which may leave you less room to negotiate details of the lease.

(4) Subject to credit approval and availability from existing dealer inventory.

Just as when you apply for a finance contract, when you apply for a lease, the dealer or leasing company will probably obtain a credit report to help determine your creditworthiness.

You will need to select a car already on the dealer's lot unless the dealer is willing to work with other dealers in your area to trade cars to get the car you want. You probably will not be able to order a car from the factory and get this particular lease deal.

(5) See your Spark dealer for details.

You would want to find out what the $4,095 due at lease signing covers.

Because advertising space is limited, other details and costs are not mentioned, such as the mileage limitation, any disposition fee, and so forth. In other words, there are many other details to see your Spark dealer about. Review other sections of this guide and make sure you ask about details such as

• Excessive wear standards
• Maintenance requirements
• Insurance coverage requirements
• Gap coverage
• Early termination charges
• Return of your security deposit at the end of the lease.

Very detailed ad

(National ad with federal disclosures and other information)

	Lease a Brand New Spark EX
Only $245 (excluding tax) per month for 48 months!
Capitalized cost reduction   $3,500
First month's payment         245
Security deposit         350
Amount due at lease signing   $4,095	excluding taxes, title, and registration fees
(1) Lease payments based on a 48-month closed-end lease. (2) First monthly lease payment, $350 security deposit, tax, tags, and $3,500 cap cost reduction due at lease inception. (3) Total of payments $11,760. (4) Lease-end purchase option at predetermined price of $12,300. (5) Different options, capitalized cost reduction, and (or) term may affect monthly payments. (6) 15,000 miles per year allowance; $.15 per mile over 60,000 miles due at lease-end if the vehicle is not purchased. (7) Offered through participating Spark dealers through December 31. (8) Includes all factory rebates and incentives. (9) Subject to credit approval and availability from existing dealer inventory. (10) See your Spark dealer for details.

(1) Lease payments based on a 48-month closed-end lease.

This is a 4-year lease; if you wanted a shorter term (for example, a 3-year lease), the monthly payments would be different. It's a closed-end lease, which means that at the end of the lease you can return the car, pay any end-of-lease charges, and walk away.

(2) First monthly lease payment, $350 security deposit, tax, tags, and $3,500 cap cost reduction due at lease inception.

You will owe $4,095 up front, plus taxes and tags (license and registration fees). Taxes and registration fees will vary from state to state; because these ads are often placed in media covering multistate regions or the whole country, the lessor typically does not include in the ad dollar amounts for taxes, registration, or title fees.

You can cover the amount due at lease inception by paying $4,095 in cash. Or you may trade in a vehicle to reduce or eliminate the cash outlay.

If you didn't pay the $3,500 capitalized cost reduction up front, you'd probably have to pay it as part of the monthly lease payment. Including this amount in the lease could add at least an extra $73 to your monthly payments ($3,500/48) plus rent charges on that amount. However, this offer may be a special incentive program, and you may not be allowed to pay the $3,500 as part of your monthly payments.

(3) Total of payments $11,760.

This amount is simply the $245 monthly payment multiplied by 48 months. In most states, you'll also pay a sales/use tax. If this tax is 5% and is added to the monthly payment, your monthly payment would be $245 + $12.25, or $257.25; the total of payments would be $12,348.

(4) Lease-end purchase option at predetermined price of $12,350.

This lease offer includes a purchase option at the end of the lease for a fixed price of $12,350. So what will the Spark cost you if you buy it? Well, you've paid a $3,500 capitalized cost reduction, $11,760 in monthly lease payments plus sales/use tax, and the purchase-option price of $12,350, for a total of $27,610. There also may be a purchase-option fee.

(5) Different options, capitalized cost reduction, and (or) term may affect monthly payments.

The advertisement doesn't tell what features and options the EX model has. If you want additional options on the car, expect to pay more.

If you didn't pay the $3,500 capitalized cost reduction up front, or if you paid a smaller capitalized cost reduction, you'd probably have to make up the difference as part of the monthly lease payments. However, this offer may be a special incentive program, and you may not be allowed to pay the entire $3,500 as part of your monthly payments. If you pay no capitalized cost reduction, expect an extra $73 in your monthly payments ($3,500/48), plus rent charges on that amount.

If you wanted a shorter term (for example, a 3-year lease), the monthly payments would be different.

(6) 15,000 miles per year allowance; $.15 per mile over 60,000 miles due at lease-end if the vehicle is not purchased.

This lease allows you to drive a total of 60,000 miles for the 4 years (an average of 15,000 miles a year). But if you drive more, even an extra 1,000 miles a year, those extra miles may cost you at lease end. An extra 4,000 miles will cost $600 if you return the vehicle. If you think you're going to drive more than the mileage limit in the lease, it's usually a good idea to negotiate the cost of those extra miles up front. Miles paid over the term are usually less expensive than the excess mileage charge.

(7) Offered through participating Spark dealers through December 31.

Manufacturers often place ads in media covering multistate regions or the whole country, but not all dealers may choose to participate. This lease offer is available for a limited time; there may be a special manufacturer incentive or rebate associated with this lease, which may leave you less room to negotiate details of the lease.

(8) Includes all factory rebates and incentives.

This lease offer includes any rebates and incentives from the manufacturer (the factory). The ad doesn't tell you the gross capitalized cost or the value of the vehicle. You can try to negotiate a different value for the vehicle and then have the dealer apply the rebates. However, if you negotiate, the advertised terms and conditions may no longer apply to the deal.

(9) Subject to credit approval and availability from existing dealer inventory.

Just as when you apply for a finance contract, when you apply for a lease, the dealer or leasing company will probably obtain a credit report to help determine your creditworthiness.

You will need to select a car already on the dealer's lot unless the dealer is willing to work with other dealers in your area to trade cars to get the car you want. You probably will not be able to order a car from the factory and get this particular lease deal.

(10) See your Spark dealer for details.

Because advertising space is limited, other details and costs are not mentioned, such as any disposition fee, personal property taxes if applicable, and so forth. In other words, there are many other details to see your Spark dealer about. Review other sections of this guide and make sure you ask about details such as

• Excessive wear standards
• Maintenance requirements
• Insurance coverage requirements
• Gap coverage
• Early termination charges
• Return of your security deposit at the end of the lease.