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Navigating the car buying minefield makes many people feel about the same as if they were navigating through a real minefield; cold sweaty palms, stomach in their throat, and heart pounding. Sadly too many people are about as well equipped to handle the sales and F&I staff at the local dealership as they are to clear mines from a field in Afghanistan. Here are some traps to avoid when you step into the sales and F&I office.

Money Factor Doesn't Equal Interest Rate – Weather by mistake, or just so they can stick it to you, you'll be led to believe, on occasion, you're getting a spectacular lease rate. Don't make the mistake of believing the money factor quoted with your lease terms is the same thing as the interest rate. Believing this is akin to believing in the tooth fairy, and way less profitable for you. The money factor is multiplied by 2400 to obtain the annual interest rate. For example, if the money factor is .0040, the interest rate you'll be paying is actually 9.6%. Needless to say, a mistake here can be very costly.

You Can't Just Get Out of Your Lease Whenever You Want To – Well, you can, but in most cases it's extraordinarily expensive. Most leases are written in a way that makes it very expensive to terminate them before the end of the term. Most consumer auto leases are of the closed-end variety. In a closed end lease, the value of the vehicle at the end of the lease is determined at the inception of the leasing contract. With these leases you can walk away from the vehicle at the end of the term, not before. This often applies even if the lease termination is involuntary, such as when the car is totaled or stolen. Check with your auto insurance company, but in many cases the lease fees associated with this aren't covered by your insurance. You could have to pay these fees out of your own pocket. NOTE: You also can't change to a different car during the lease. This is a misconception held by some people.

Just Because Your Payments May Be Lower Doesn't Mean a Lease Is Better Than Buying – It all comes down to how much you pay at the inception of, and during, the lease term; and the actual value of the vehicle at the conclusion of the lease. If the interest rate is low, the vehicle's actual value at the end of the lease is higher than the residual value used to calculate the lease, and your cap cost reduction payment (down payment) at the lease inception is low, leasing may be a very good deal, you can get into the vehicle for less cash out of your pocket, and get lower payments to boot.

But, and this is a very big but, these conditions very often do not apply. The lease's interest rate will often not be very attractive. In addition, leasing companies figure vehicle residual values for a living, and they're not likely to miss the depreciated value of your vehicle by much. In some areas, though, certain vehicles are worth much more than average. An example is Subaru Legacys in New England or the Pacific Northwest. They seem to hold their value much better in these locations than average.

A lease may indeed be the way to go for you when you get a new vehicle, then again it may sink you financially. You need to look carefully at your specific situation to be sure. Be aware too, that leases have excessive mileage charges. Exceed the mileage stated in the term of your lease and you'll be paying between 10 and 20 cents a mile for your troubles.