Leasing 101
Leasing is the most complex way to acquire a car, which makes it the easiest place for dealers to hide profit. They want you to negotiate the monthly payment. You'll negotiate the numbers underneath it.
The Three Numbers That Matter
Cap Cost (Price): Negotiate this exactly like you're buying with cash. Lower cap cost = lower monthly.
Money Factor (Interest): Multiply by 2400 to get APR. If they give you 0.0025, that's 6% APR. Ask for it directly.
Residual Value: What the car is worth at lease end. Set by manufacturer - not negotiable, but affects your payment.
NEVER PUT MONEY DOWN ON A LEASE
If you total the car, that down payment is gone forever. GAP insurance pays the bank, not you. Always $0 down.
Lease Battle Plan
Don't skip steps. They count on you being lazy.
Phase 1: The War Room
Leases have hidden numbers. Learn them.
Know Your Credit Score
Dealers lie about your score to bump your rate. Know the truth first.
Get Competing Financing
Credit unions offer lease alternatives too.
Learn the Lease Language
Cap cost, residual, money factor - know these.
Calculate Your Real Mileage
Underestimating costs you big at lease end.
Compare Manufacturer Programs
Lease deals vary wildly by brand/model.
Confirm Leasing is Right for You
Leasing isn't always the smart move.