How to Negotiate a Car Lease

Leasing a car, truck or SUV is a great way to enjoy a vehicle without the long-term commitment and added expenses that come with purchasing outright. This can mean having a vehicle that remains under warranty or side-stepping the annoyance of depreciating car value when reselling at some point down the road. It’s a smart route to take when you’ve done your homework and understand all your options, but it’s not always for everyone. For example, take into consideration how many miles you put on your vehicle annually; if it’s far beyond the leasing norm of 12,000 miles, then a lease could be an expensive mistake due to mileage penalties.
If you’re interested in leasing and want the most for your money, here are some helpful tips to keep in mind when you’re negotiating your lease.
Related: How Much Does It Cost to Lease a Car?
Get Those Steps In and Shop Around
A great starting point when negotiating a lease is to have options and establish a competitive bidding environment to get the lowest price. We get it — for many people, going car shopping is a dreaded event that ranks somewhere between having a root canal and learning how to juggle porcupines. Yet a lot of stress and money can be saved by taking a little extra time to visit multiple dealerships or by having more than one vehicle on your shopping list.
Keep the Big Picture in Mind
All too often, a deal that sounds too good to be true is exactly that: a sudden wallet-draining mistake. A smart way to avoid this is to negotiate the purchase price (or capitalized cost) and not monthly payments. A lease deal with tempting low monthly payments is often made possible by a very high initial down payment. You’re not getting a good deal if it hinges upon you throwing gobs of money out the window at the start of a lease.
Consider What You’ll Want at the End of a Lease
Another smart rule of thumb is to know the residual value used to calculate how much you’ll pay during the lease along with the purchase price if you choose to buy the car at the end of the lease. In most (but not all) leases, these will be the same figure. Also know and be prepared to negotiate the interest rate, often referred to as the money factor, that you’ll be paying; for a comparable interest rate, multiply the money factor by 2,400.
Read the Fine Print to Avoid Expensive Surprises
Make sure you know all of the fees involved and expect at least an initial acquisition fee and a disposition fee when turning in the car. Remember, these leasing fees are often negotiable.
Mind the Gap … Insurance
All leases should include guaranteed auto protection, or what’s commonly known as gap insurance. Basically, this covers the difference between what the car is worth and what you owe on the lease; standard auto insurance covers the depreciated value of a car.
To help put this into perspective, imagine your vehicle gets stolen or totaled in an accident. The lease would be terminated early, and the lending bank could potentially be owed thousands of dollars because the amount of the loan is more than the current value of the car. Gap insurance handily covers this cost.
More From Cars.com:
- Can You Lease a Car With Bad Credit?
- Should I Buy a New, Used or Certified Pre-Owned Car?
- How Does Leasing a Car Work?
- Which Companies Offer Leasing for Certified Pre-Owned Cars?
- More Car Buying Advice
Sometimes It Pays to Think Short-Term
One of the key benefits of leasing is having a nearly showroom-fresh vehicle in your garage or driveway. This also means having a car or truck that remains well within any bumper-to-bumper and powertrain warranty coverage. A short-term lease of, say, three years should keep your vehicle safely within these parameters, while a longer-term lease could be enticing because of lower monthly payments. But if something goes wrong — or even if pricey routine servicing is required — you’ll have rapidly lost those savings.
Leasing Isn’t Only for Brand-New Cars
Many automakers offer lease deals on certified pre-owned models. CPO vehicles undergo an official checklist to look for anything that needs replacement or repair. They’ll often have some degree of extended warranty coverage available, too.
Don’t Mess With a Good Thing
Avoid any dealer options along the lines of extra-cost undercoating, window tinting or a security system; any scrupulous dealer won’t put these on the bargaining table in the first place. After all, why pay more for a vehicle you don’t actually own? The same is true of aftermarket add-ons, such as wheels or exhaust systems. Don’t tinker with a leased vehicle, as you could completely void the warranties.
Related Video:
Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.
Featured stories


2025 Toyota 4Runner Review: Time for Some Soul Searching

