Auto leasing has become very popular over the last few years as consumers are becoming increasingly challenged to find affordable automobile financing alternatives in the current economy. Car prices are rising at an unprecedented rate. Affordability has therefore become one of the most important factors for drivers who need a vehicle for their primary transportation. Leasing offers a solution to those challenges and needs.
Currently, about a third – one of every three – of all new cars is being leased. For higher priced luxury vehicles, the rate is even higher. Automotive consumers have become more open to and acceptive of alternative financing methods for their car needs. Manufacturers have stepped up by offering very attractive and worthwhile lease deals, usually in the form of time-limited monthly offers.
Many people who could benefit from leasing have misconceptions that causes them to unnecessarily avoid it – for the wrong reasons. They often think that leasing is a kind of dealer scam, or that it only applies to business uses, or that there are hidden pitfalls, all of which arises from not knowing how it works, or how to determine if it’s right for them (it’s not right for everyone). Some people who are already leasing are paying too much because they didn’t know a good lease deal from a bad one. And there are others who made the mistake of leasing when they shouldn’t have – because they didn’t fully understand it.
LeaseGuide.com helps you understand auto leasing, how to lease a car the smart way, know who should lease (and who should not), how to calculate monthly lease payments, compare lease versus buy, and how to get the best lease deals. We do not sell or lease cars. That’s not our business. Except for our popular Lease Kit, everything on our site is free and is open to sharing. If you have questions, you can contact us directly or check us out on Quora.
“Your site is fantastic. Thank you for the comprehensive and logical explanation of leasing. I feel prepared to step into the dealers domain and get a fair and good deal for myself. Your site is the absolute best site on the web for leasing information.” Nancy – Yahoo.com
The Lease Guide is an easy-to-read, easy-to-understand guide to smart car leasing. Everything is explained in just the right amount of detail.
- Introduction to Leasing
- What is Leasing?
- Lease vs Buy?
- Car Leasing Benefits
- Who Should Lease?
- Types of Leases
- How Car Leasing Works
- Lease Payment Formula
- Lease Taxes and Fees
- Lease Contracts
- Prepare to Lease
- Finding Car Lease Deals
- Negotiating a Lease
- After the Deal
- Lease-End Options
The Lease Kit is a supplement to our free Lease Guide and provides a set of over a dozen tools, calculators, tables, charts, and guides to help automotive consumers who are seriously considering a lease, or who have already leased. Included in the Lease Kit:
- Lease Evaluator Calculator NOW FREE
- Lease Inspector Calculator NOW FREE
- Lease Payment Tables
- Lease Residuals Calculator
- Affordability Calculator
- Vehicle Lease Ratings
- Lease Worksheet
- Sample Lease Contract NOW FREE
- Contract Checklist NOW FREE
- Lease Early Termination Guide NOW FREE
- Lease-End Advisor NOW FREE
- Max Lease Terms
A set of unique online calculators that help calculate car lease payments and costs, compare financial differences between leasing and buying, evaluate lease deals for any vehicle, and determine excess mileage costs.
Best Lease Deals
Whether you lease or buy, price is the most important factor in getting a great deal. The lower the price, the lower the payment. You can haggle long and hard with a dealer to get a good price, or do it the easy way — get free price quotes online from a car pricing service such as our new Car Deal Finder tool. For best results, get multiple dealers’ prices, compare, and go with the best deal.
How Car Leasing Has Changed in 2022-2024
The worldwide COVID pandemic created changes in the car industry that have long-term effects, particularly in leasing. Prior to the pandemic, car manufacturers typically made leasing very attractive by subsidizing the price, the interest rate (money factor), and the residual value. Now, there are very few such deals. Consumers must now take extra care to analyze any lease deal and compare it to the option of purchasing. Use our Lease Deal Calculator to evaluate any lease deal, or compare any deals you may be considering.
Lease or Buy? That is the Question
It’s natural for anyone considering car leasing to wonder if it’s better to lease, or to buy. The fact is that one way will nearly always be better in any given situation. Therefore, it’s important to understand how each method works and get an objective comparison for making a correct decision. See Lease vs Buy? Which is Better? and our Lease vs Buy Calculator.
What is the One Percent Rule in Car Leasing?
The One Percent Rule is an easy and quick way to evaluate any car lease deal to determine if it’s good or bad. It’s sometimes called the “Payment to Value” method. It’s simply a way of comparing the monthly payment in a lease deal to the sticker price of the vehicle (not the negotiated price). Depending on the results, you can know just how good, or bad, the deal is. What Is the One Percent Rule in Car Leasing?
New Calculators and Features Now Available for Free
We are how making some very useful features and calculators available to our readers in celebration of our nearly 30 year history of providing the best of car leasing information and advice on the Internet. See above on this page, in the Lease Kit section, for a list of the newly available items, now free.
Alternative to Leasing: Cheap Used Cars
Leasing typically offers the lowest monthly payments for brand new cars, but good almost-new used cars can provide even lower payments. Look for the best used car deals in your area with our unique LeaseGuide Car Deal Finder tool.
Car Leasing – As Described by chatGPT, the Hot New Artificial Intelligence (AI) Engine
We posed the question, “describe car leasing in simple terms” to chatGPT and got the following response, “Car leasing is a way of using a vehicle without owning it. Instead of buying a car, you pay a monthly fee to use it for a set period of time, usually two to four years. At the end of the lease, you return the car to the leasing company and can choose to lease a different one or buy the car you’ve been using. The monthly fee is based on the car’s value, the length of the lease, and the estimated amount of miles you’ll drive during that time. You’re responsible for regular maintenance and repairs, but you won’t have to worry about selling the car or its depreciating value when you’re ready for a new one.” AMAZING
Car Lease Buyout – Should You Purchase Your Leased Car?
Does it make sense to buy your leased car either at normal lease-end, or before the end? What are the benefits? Should you do an early buyout? What does it really accomplish? And what are the potential problems? We explain it all and provide the answers in our easy-to-read article, Car Lease Buyout – Good Idea or Not?
Not Sure Which Lease Calculator You Need?
We provide a convenient Guide to Lease Calculators that lists and explains each of almost a dozen different car lease calculators that we offer on this web site. Each has a special purpose and we tell you which is the best for your particular purpose. Most are unique and not found anywhere else on the Internet.
Best New Car Lease Deals
Did You Know … ?
Did you know that vehicle price is the most important part of negotiating a car lease deal?
In fact, it is the only part of a lease that a dealer can negotiate. All other factors such as money factor, residual value, and acquisition fee are already set by the lease finance company. Therefore, it’s important to know that you should always get the best price possible on a vehicle before you agree to lease. One way to do that is by using an online car pricing service such as our LeaseGuide Car Deal Finder, where you’ll not only find prices, but low price deals that will be honored by dealers in your area.
About Us
LeaseGuide.com was created and launched in 1995 by Al Hearn when car leasing was new to most consumers. Although the car leasing industry has matured and leasing has become an accepted method of car financing, it is still not well understood. LeaseGuide.com has grown and improved over the years to address this need to become one of the most respected sources of expert advice and information about automobile leasing. The purpose of this web site is only to provide consumer advice and information. We do not sell or lease cars.