Auto leasing has exploded in popularity in the last few years, particularly as car buyers are being more challenged to find affordable automobile financing alternatives in a tough economy.
Yet, many automotive consumers don't know how car leasing really works, or how to determine if it's right for them. Many people now leasing are overpaying because they didn't know how to get a good deal — or how to recognize a bad deal. Others who could greatly benefit from leasing are shying away because they don't understand it or have misconceptions about it.
So if you're thinking about leasing a new car and want to understand how leasing works, or don't know if you should lease or buy — or simply need help with your current lease — this web site was created for you. Remember, knowledge is power — especially in car leasing.
What is LeaseGuide?
LeaseGuide.com is an online guide to smart car leasing. It has provided high-quality car leasing information, expert advice, and online lease calculators to millions of automotive consumers since 1995. It is brought to you by automotive leasing expert, consumer advisor, and Lease Guide author, Al Hearn.
LeaseGuide.com is dedicated to helping auto consumers understand leasing, take advantage of its benefits, get the best deals, and avoid potential mistakes and problems. We are not a lease company or a dealer. We do not lease cars. More About Us >>
What's in the LeaseGuide Web Site?
| Car Leasing Guide | A complete online guide to car leasing; everything you need to know, simply explained, with plenty of examples and tips |
| Lease Payment Calculator | Calculate car lease payments and total costs, including taxes with this user-friendly online lease calculator |
| Lease vs. Buy Calculator | Compare leasing versus buying — payments and all costs with this unique, easy to use calculator |
| The Lease Kit | Car leasing tool kit: lease deal calculators, lease-end guide, vehicle ratings, sample contract, checklists, payment tables, worksheets, and more |
| Lease Resources | Additional leasing resources, information, and web sites for car leasing consumers |
| Frequent Questions | Common car leasing questions, with all the right answers and explanations |
| Exclusive articles for automotive consumers - leasing, loans, credit, insurance, used cars, and more | |
| Glossary | Comprehensive index of automotive terms and definitions, particularly related to leasing |
Best Lease Prices? Get a Free Quote
When you read the Lease Guide, you'll discover that a car's price is the most important factor in getting low monthly payments, regardless of whether you lease or buy. But haggling over prices with dealers can be stressful and most people hate it.
LeaseGuide.com recommends the following online pricing services who have already worked out good prices with dealers in your area. Just specify the vehicle you want and they'll get you a fast, free car quote, no strings attached. ——— InvoiceDealers is our top recommendation because it's consistently rated #1 ——— But don't stop there. Also get prices from
Edmunds, CarsDirect
, and
Yahoo! Autos
. Compare all the deals, and pick the best one.
Top 10 Lease Cars
Here are the top lease vehicles from Yahoo! Autos. Price is the most important factor in leasing, so ask for free dealer price quotes if you are interested in one of these models — Honda Accord, Toyota Corolla, Chevrolet Malibu, Toyota Camry, BMW 5-Series, Mercedes C-Class, Honda Odyssey, Mercedes E-Class, Chevrolet Corvette, Land Rover LR2
Lease or Buy? That is the Question
Almost everyone who has thought of car leasing wants to know if they would be better to lease or to buy. The fact is that one way will nearly always be significantly better than the other in any particular situation. Therefore, it is important that you understand both methods and how to determine which is best for your own situation. Our article, Lease vs Buy, Which is Better?, is your starting point. Also see our Lease vs Buy Calculator.
Car Lease Calculator - Calculate Lease Payments
Use our full-function Car Lease Calculator to quickly calculate your monthly car lease payment and total leasing costs. Plug in your numbers and see the result. ——— Just be aware that simply knowing your lease payment doesn't tell you if it is a good deal or not. Only the Lease Evaluator in our Lease Kit can do that. Also see our Lease Calculator for Apple iPhone and iPod Touch.
Car Lease Residual Values
Residual value is one of the most important factors in car leasing, yet it is the factor that is least understood by leasing consumers. Why is residual value important? How are residuals determined? Who sets residual values? Are they negotiable? Find out by reading our article, Car Lease Residual Values.What's a Good Lease Deal? How Do You Know?
Even though payments may seem very low on lease deals you're considering – much lower than buying with a loan – how do you know if it's actually a good deal? Are your payments higher than what other people are paying? The Lease Evaluator in our Car Lease Kit can tell you instantly. It enables you to specify a vehicle make/model and then see the best-case, and worst-case, monthly lease payment for that vehicle. See this article for some real examples.
Get Out of Your Lease Early. How?
Have someone else take over your lease is a good way to do it. It's the easiest and the lowest cost method (no penalty fees). There are a few specialized companies who will list your car, find a "buyer", and take care of the details for you — for a small fee. We especially like Swapalease, the long-time respected leader in online car lease transfers. As easy as this method might seem, it doesn't work for everyone. The Lease Termination Guide in our Lease Kit explains all your other options.
Does Your Car Lease End Soon? Be Careful - Make the Right Decision
One of our readers told us that she really disliked her leased sedan and so, at the end of her lease, she simply returned it to the lease company and walked away. What's the problem? She found out later that she could have bought the vehicle from the lease company for her contract lease-end purchase price, which was less than market value, and could have sold it for a $6000 profit. —— The point is this: it's very important to examine ALL your lease-end options before you make a rush decision. See our Lease-End Considerations page for more details.
Car Lease Ads - What's the Story? Good Deals or Not?
You've
seen those attractive car lease advertisements
in the newspaper and on TV. They advertise low
monthly payments and imply that these are "special"
deals. Are they special? Are
the payments really good deals or not? What
does the fine print mean? What are they not telling
you? Is there a catch? See our revealing article, Understanding
Car Lease Ads, and learn how to evaluate
such deals.
Car Deals in Tough Economy
Car manufacturers are currently offering generous rebates, discounts, low APR loans, and special lease deals to help boost sales in the recession. Be sure to get free price quotes from Edmunds, which will include any available incentives on the make and model. See Best Car Deals for special promotional incentives and rebate information. ——— However, as both leases and loans become more expensive, leasing will continue to be the lowest-cost financing alternative, even when compared to 0% loans. If you are having credit problems read our article, Bad Credit Car Loans and Leases. —— If you are having problems making your current car loan or lease payments, read our article, Can't Afford Your Car? ——— Also consider a Car Lease Takeover from someone who already got a great lease deal, and now wants out. Get low payments, no down payment, and even cash incentives from desperate sellers. It is currently the best way to drive a late model car at lowest possible cost.
Don't Be a "Payment Buyer" When You Lease or Buy
Dealers love "payment buyers." These are customers who only look at monthly payment amounts when they buy or lease. Unfortunately, this isn't a good way to shop, especially when you lease. You can be offered what appears to be a great deal and find out that you significantly overpaid. Read our Payment Buyer article to see some real examples and learn more.
Lease Takeover - No Money Down - Cash Back
It's possible to lease a practically new car, with no money down, for a short term (1-4 years), by simply taking over the payments from someone who wants out of their lease early. Real bargains are available since "sellers" are often desperate and offer cash incentives. We recently examined a list of lease-takeover vehicles at SwapaleaseCar Leasing and Auto Insurance
Did you know that leasing may require a higher level of insurance coverage than you are carrying now? It's true, and it catches many people off guard. But it's easily possible to reduce your rates for more coverage so that it doesn't become an added cost. This makes understanding insurance even more important than ever when leasing. See our articles, Car Insurance and Leasing and Cheap Car Insurance, for more details. ——— Even if you aren't leasing, knowing how to get Find the Best Auto Insurance Company is important to getting the best rates.
Your Credit Score Makes a BIG Difference
When you lease or buy a car, the dealer and his finance company check your FICO credit score from one or more of the three national credit reporting companies — Equifax
, Experian, and TransUnion. Your score determines what interest rate (lease money factor) you'll pay, or if you'll be approved at all. Each reporting company can have a different score for you — you need to know them all. Scores above 700 get you the best rates. Below about 640, you're in trouble.Your score also affects your car insurance rates, your ability to get a mortgage, or even your ability to get a job. Credit history reports are now free to most consumers in the U.S., but credit scores are not. For more details, see Your Credit Score - Know It and Understand It.
About to Lease? Already Leased? How Good is Your Deal?
So you're about to sign or have already signed your lease contract. Did you get a good deal? What interest rate did you actually pay (you won't find it in your contract)? How much was your bank fee ( not shown in most contracts)? What does that mumbo-jumbo in your contract really mean? The Car Lease Kit contains a fully-explained lease contract form and contract checklist, and a special Lease Inspector calculator that will completely analyze all figures in your lease deal and tell you where you did well, or not so well — and whether there were mistakes in the dealer's calculations.
Used Car Leasing. Smart Move or Not?
Leasing a used car can often make good sense, especially if it's a vehicle that is relatively new and holds its resale value well. Great deals can be had on a used car lease but make sure you understand how it works. It's not quite the same as a new-car lease. See our article, Used Car Leasing, for more details. Also visit our Used Car Advisor web site to learn how not to get ripped off.
Single Payment Car Leasing — Pre-Paid Lease
Pre-pay your car lease with a single up-front payment and avoid monthly payments. How does it work and is it a smart thing to do? Do you avoid interest charges and save money? Get the answers in our article, Pre-Paid Car Leases.
Best Cars for Teenagers
In our article, Best Cars for Teens, we discuss how to select the right cars for young drivers. Which are most economical, safer, and practical? Which should be avoided? Is leasing right for teen drivers who haven't yet established credit histories? How about long-term loans? And how about auto insurance for teenage first-time drivers? We provide answers. Also look at our First Car Guide web site.
Take Over a Car Lease - Low Payments - No Down Payment
It's possible to lease a practically new car, with no money down, for a short term (1-4 years), by simply taking over the payments from someone who wants out of their lease early. Real bargains are available since "sellers" are often desperate and offer cash incentives. We recently examined a list of lease-takeover vehicles at Swapalease and found some outstanding transfer deals — many late model vehicles for under $200 a month! Luxury cars for less than $400! For more, read our article, Short Term Leasing.
Lease a Luxury Car for Less
Luxury cars have higher lease-end residual values than most other cars, making them the most-leased category of all vehicles - 70% are leased. It's possible to lease a luxury car for less money than a lower priced ordinary car due to its better residual. Find out how and why in our article, Luxury Car Leasing Explained.
Looking for a Cheap Car?
We frequently get emails asking about the least expensive way to get into a car. Leasing is obviously one of the ways, but we know that leasing is not the right answer for everyone. We explain a number of other ways to find cheap cars in our article, Cheap Cars - Where to Find Them —— You might also consider other articles of interest: Public Car Autctions, Buying Repossessed Cars, Police Impound Auctions, or Buying Cars at Insurance Auctions.
What Dealers Don't Tell About Car Prices
Dealers prefer to keep customers in the dark about how car prices work. That way, there's more opportunity to extract maximum profit. It's a fact that dealers sell the same vehicle make/model to different customers at widely different prices, depending on how well the customers understand pricing. For more, see our informative article, Dealer Car Price Secrets.Got a GPS Navigation System for Your Car? Why Not?
Those who have never used a car GPS wonder why
they would ever need one. Those who have, wonder
how they ever did without one. Some now come with
3D maps, street name announcements, wide screens, point-of-interest locators, traffic indicators, and rerouting functions. Read
this article about GPS
Navigation Systems and decide if
you can do without one or not. Bet you can't.
Free Cars. Really?
Yes — and no. Of course, nothing is really free, but there are advertising companies who will pay you to drive your own car, or provide you a free car to drive. Real people are participating in these real programs. What's the catch? Read our article, Free Cars - Fact or Fiction?, to learn more.