Car lease deals, decoded before you sign

There is no single good number, because payment depends on the car's price, the residual value, the money factor, the term and what you pay at signing. A better test is whether the negotiated price and money factor are competitive and whether the total cost over the term fits your budget. Compare written offers for the same term, mileage and amount due at signing.

A lease application usually triggers a hard inquiry, and the lease appears as an installment account on your credit reports. Paying on time can help your credit history, while late payments can hurt it. Shopping several lenders within a short window is typically treated as a single inquiry by common scoring models, though the exact window varies by model.

Yes. The capitalized cost (the price of the car) is negotiable just like a purchase price, and dealers can sometimes mark up the money factor or adjust fees. Negotiate the price first, then ask for the money factor, residual and fees in writing. Manufacturer-set residual values generally are not negotiable.

You pay a per-mile charge stated in the lease, commonly somewhere in the range of 15 to 30 cents per mile depending on the vehicle. You can sometimes reduce the cost by purchasing extra miles at signing or by negotiating a higher allowance. Check your contract for the exact rate and any waivers.

Usually yes, but it can be costly. Early termination often requires paying the remaining payments or the difference between the early payoff amount and the car's value. Alternatives include a lease transfer, a trade-in at a dealer who pays off the lease, or buying the car. See our guide on ending a lease early.

GAP coverage covers the gap between the car's value and what you owe if it is totaled or stolen. Many leases include it, but not all do. Check your contract and ask your insurer whether you need it before buying an extra product.

Most closed-end leases give you the option to buy the car for the residual value stated in the contract, plus any fees and taxes. Compare that price with the car's market value before deciding.

The federal consumer clean vehicle credits ended for vehicles acquired after September 30, 2025, so any lease incentive now comes from the manufacturer, the lender or state and utility programs rather than the federal credit. Check current offers and your state's programs, and confirm details with the sources listed in our EV lease guide.