🚘 Auto Lease Calculator

It depends on your situation. Lease if: you want lower monthly payments, like driving new cars every few years, drive under 12,000-15,000 miles/year, and don't want to deal with selling. Buy if: you want to build equity, drive more than 15,000 miles/year, plan to keep the car long-term, or want to customize your vehicle. Use our "Compare Lease vs Buy" feature to see which saves you more money.

Money factor is the lease equivalent of an interest rate. To convert: APR = Money Factor × 2400. For example, a money factor of 0.00200 equals 4.8% APR. Dealers often quote money factors because they look smaller, but always convert to APR to compare with loan rates. A good money factor is typically 0.00125 or lower (3% APR).

You'll pay an excess mileage fee, typically $0.15-$0.30 per mile over the limit. For example, if you're 5,000 miles over with a $0.25/mile fee, you'll owe $1,250 at lease end. If you think you'll exceed the limit, negotiate a higher mileage allowance upfront—it's usually cheaper than paying overage fees. Track your mileage regularly to avoid surprises.

Yes! Many people don't realize you can negotiate the selling price (capitalized cost), not just the monthly payment. Also negotiate: the money factor (interest rate), acquisition fees, and disposition fees. Get quotes from multiple dealers. The residual value is usually set by the manufacturer and harder to negotiate. Focus on getting the lowest selling price first, then work on other terms.

Residual value is the estimated worth of the car at lease end, expressed as a percentage of MSRP. Higher residual = lower monthly payments because you're only paying for the difference between the selling price and residual value. For example, a $40,000 car with 60% residual ($24,000) means you pay for $16,000 of depreciation. Luxury brands often have higher residuals, making them attractive lease options.

Common lease fees include: Acquisition fee ($395-$995) - charged by the leasing company to set up the lease; Disposition fee ($300-$500) - charged when you return the car; Documentation fee ($75-$500) - dealer processing fee; Registration and taxes - varies by state. Some fees are negotiable. Always ask for a complete breakdown of all fees before signing.