By Remar Sutton

"Look at all the leasing ads! And don't they sound enticing?

Leasing, the fair-haired child of the automobile business, is knocking at your door. And for some of you it can be the best way to drive a new or used vehicle.

But leasing also is the major area of consumer complaints in all 50 states for the third year in a row, according to a survey by the National Association of Attorneys General. Why? You, the consumer, haven't been given enough information by the leasing organizations to know what you're paying or what you're really agreeing to do.

Who should lease? The leasing companies say everyone, but they're wrong. Leasing generally works for people who always have car payments anyway, are financially sound (they don t worry about their job or paying their bills), and who really take care of their cars. Leasing generally doesn't work for people who like to keep cars forever, who are worried about making the next month's bills, and who end up driving junkers. Leasing definitely doesn't work if you're worried about your job, either. If you buy a car and have trouble making payments, you always can try to sell it. If you lease a car, you don't have that option.

How do you do it right? First, determine a monthly payment you can afford. Your credit union probably can help you budget.

Second, decide what to do with your old car. Sell it yourself, if you're smart. Third, plan on bargaining with your leasing company. In the car business and particularly in the leasing business everything is negotiable, including the time of day. For instance, if the leasing company says your payment will be $325 on the car of your dreams, shop that payment with another leasing company. You'll be surprised how fast the payments will drop. Keep an eye open for these potential problems areas: Without fail, make sure the dealer determines your lease payment on the number of miles you'll actually drive during the lease. If you drove 50,000 miles in the past two years, have the dealer calculate your lease for the next two years figured on 50,000 miles. Then pay attention to the early termination section. What penalties are you paying for early termination? And finally, look at your normal wear and tear clause: Is it reasonable, based on the current wear and tear on your old car?

Leasing might be your smartest move. Just make sure it's for you, and then negotiate!

A final tip: Your state attorney general's office probably can provide you a copy of the Reality Checklist for Leasing, written by several state attorneys general and that fine fellow, me. Get a copy and use it.

Editor's note: Contact the credit union before you sign the bottom line. Make sure leasing really is best for you.

Remar Sutton is president of the National Consumer Task Force for Automotive Issues. He writes this column exclusively for credit unions.