How to lease a car: check the deal first
A low monthly payment can hide a big amount due at signing or costly turn-in charges. Get the whole lease in writing, check the mileage limit, and compare it with buying over the same number of months.
Last reviewed: October 1, 2026. How we review this guidance. Rules and fees can vary by state, lender, dealer, and vehicle.
Get every lease number in writing
Ask for the agreed price of the car, everything due at signing, the monthly payment, the total of payments, the mileage limit, and what you'll owe at the end to turn the car in or buy it. On the federal lease form, look for the capitalized cost, residual value (what the car should be worth at the end), and rent charge (the interest). The capitalized cost is the car's price plus anything added to it, like add-ons or money you still owe on your old car. Make sure it starts with the price you agreed on and includes only extras you asked for. Review the federal disclosure requirements.
If the dealer quotes a money factor (a small decimal that sets the lease's interest charge), multiply it by 2,400 for a rough interest rate: 0.0025 is about 6%. Dealers can mark it up, so ask: “Is this the leasing company's base rate?” Then judge the whole lease cost, not just the monthly payment.
Have the numbers? Check if the monthly payment matches them, and see what to ask if it doesn't.
Total cost
Add the money due at signing to all the monthly payments. A big down payment makes the monthly payment look smaller, and you usually lose it if the car is stolen or totaled.
Mileage and wear
Write down the mileage limit, the cost per extra mile, wear-and-tear rules, required maintenance, and required insurance.
Ending the lease
Before you sign, check the cost to end early, the turn-in fee, and the price to buy the car at the end.
Car lease checklist
Open a step to see what to do. Check it off once it's done. Progress is saved only in this browser.
Decide how you'll use the car
Estimate your miles, your needs, and how long you'll keep the car.
The full checklist
Every phase and step on one page. Open a step to read what to do and why.
1. Decide how you'll use the car
Estimate your miles, your needs, and how long you'll keep the car.
Check your credit reports
See what lenders will see before you ask for a loan.
Estimate your miles and use
Base it on how you actually drive and any changes ahead.
Write down your yearly miles, commute changes, trips, cargo needs, parking, and likely wear. Compare that with the lease's mileage limit and written wear rules. Neither leasing nor buying is always better; it depends on how you drive.
Compare leasing and buying over the same time
Use the same number of months for both.
Use written lease payments and fees. For buying, include the payments over the same months, what you'd still owe on the loan, and what the car would likely be worth. Write down your assumptions so you can see what drives the result.
Put both options side by side in the worksheet.
2. Read the lease quote
Get written amounts for signing, each month, and the end of the lease.
Check the car's price in the lease
Ask for the agreed price of the car and anything else rolled into the lease.
Ask the dealer to itemize the agreed price and anything added to the lease balance. The paperwork calls this total the gross capitalized cost. After any down payment, rebate, or trade-in credit, what's left is the adjusted capitalized cost, which is used to figure your payment. You can negotiate the price, just like when you buy. Check each line before you sign.
Look up lease terms while you read the paperwork.
Check the end value and money factor, Critical
Ask which residual value and money factor were used to set your payment.
The residual value is what the car is expected to be worth when the lease ends. Ask for it, the rent charge (the lease's finance charge), and the money factor (the lease's version of an interest rate, written as a small decimal). Multiply the money factor by 2,400 for a rough interest rate: 0.0025 is about 6%. Ask if that's the leasing company's base rate, since dealers can mark it up. The leasing company may not call it an APR. Then compare the full written payments and charges.
Enter the quote's numbers to see if the monthly payment matches them.
Itemize what's due at signing
List each payment, fee, deposit, credit, and down payment.
Ask for the total due at signing and how it will be paid. Separate refundable security deposits, the first payment, taxes and fees, and any down payment, trade-in credit, or rebate used to lower the price (capitalized cost reduction). Money you put toward the lease this way is usually lost if the car is stolen or totaled, because insurance and GAP coverage (which pays the difference between the car's value and what you still owe) pay the leasing company.
Compare the total of payments
Use the total, not just the monthly payment.
Federal rules (Regulation M) require the lease to show a total of payments and a payment schedule. Also look for charges that aren't in that total, such as ending early, extra miles, wear, default, or buying the car at the end.
3. Check use limits and ending rules
Review the rules for how you use the car and how the lease ends.
Check mileage and wear rules
Get the mileage limit, per-mile charge, and wear rules in writing.
Ask how extra miles are charged, whether you can buy more miles up front, and what counts as excess wear. Photograph the car at delivery and keep the condition report.
Find out what happens if you end early
You can't just return the car and stop paying. Find out what it costs.
Read the early termination rules and how the charge is figured. If it's unclear, ask for a written explanation. Compare it with how long you expect to keep the car.
Check return charges and the option to buy
Find the return fee and whether you can buy the car when the lease ends.
Write down any return (disposition) fee, the purchase-option price or how it's figured, and any purchase-option fee. GAP coverage, what happens if the car is totaled, wear waivers, refunds, and lease transfers all depend on your contract, so check it.
4. Compare and sign
Compare written leases on the same terms and keep the full signed copy.
Compare the same car, term, and miles
Line up the terms before you compare payments or total cost.
Use the same VIN or features, lease length, mileage limit, amount due at signing, and add-ons. A lower payment can come from a bigger down payment, fewer miles, or different items rolled in.
Review every add-on and extra charge
Ask if each one is optional and what it costs in total.
Get insurance before you drive away
Get the exact start date and time of coverage for this car.
Get every promise in writing, Critical
A spoken promise is hard to enforce. Write it into the deal.
Check the final lease before you sign, Critical
Match the final lease papers to the written quote you chose.
Check the car, gross and adjusted capitalized cost, capitalized cost reduction (any down payment, trade-in credit, or rebate that lowers the price), residual value, rent charge, payment schedule, total of payments, and itemized amount due at signing. Confirm the lease length, mileage limit, extra-mile and wear charges, early termination rules, return fees, and purchase option. Check the add-ons and signatures, and keep the full signed lease. If anything differs from your quote or is unclear, stop and ask for a corrected copy or a written explanation before you sign.
5. Follow up after you get the car
Make sure the payoff, title, promised work, and any refunds get done.
Confirm your old loan was paid off
If you owed money on your trade-in, check with the old lender.
Confirm your first payment and who to pay
If you borrowed or leased, confirm who gets the payment and when it's due.
Track title and registration
Know who is filing it, which forms are needed, and your state's deadlines.
Finish promised work and track any refund
Keep deadlines, receipts, work orders, and cancellation records together.
Delivery and first-month record
Leave with copies of everything you signed and a dated list of what's still owed to you. Give each promise or deadline its own line.
- Before you drive off, confirm the leasing company has accepted your lease. Get the full lease disclosures and its insurance rules, and ask if anything is still pending.
- Make sure insurance covers this exact VIN before you drive away. Keep proof of coverage, delivery photos, all keys, and the promised-equipment list.
- Traded in a car you still owed on? About a week later, call the old lender to confirm the payoff arrived. Then check your first payment, title and registration, promised work, and add-on refunds.
These notes are for you, not a message to send. Notes stay in this open page only, so copy, download, or print them before you leave. Write down document names or reference numbers. Keep account numbers, credit reports, and ID documents in your own secure files.
Fill in this record
VIN (vehicle identification number), mileage, date and time, seller, list of signed documents, condition photos, keys, accessories, and anything missing.
Leasing company, a contact you verified yourself, confirmed terms, anything still pending, and the date it was confirmed.
Insurer, when coverage starts, proof received, and whether it meets the lender's or leasing company's rules.
Written rules for returning or ending the lease early (California gives a 3-day right to cancel most used-car leases from a dealer at $50,000 or less), mileage and wear limits, fees, coverage, and how to cancel add-ons.
Old lender, expected payoff date, when it was confirmed, any balance left, and what's still open. Write not applicable if none.
Who collects payments (verified), amount, due date, how you'll pay, and whether autopay is set up. Write not applicable for a cash purchase.
Who is filing, which agency and forms, receipts, expected finish date, when the temporary tag expires, and your follow-up date.
Each item, its written promise (often a “We Owe” form) or cancellation request, deadline, who's responsible, where the refund goes, and proof it was done or credited.
Sources
- CFPB Regulation M: Consumer Leasing Disclosures
- CFPB: Leasing versus Buying a Vehicle
- FTC: Financing or Leasing a Car
These sources explain general rules. Check current requirements in your state and the terms in your own paperwork.
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Car-deal rules and fees depend on your state. Check your state motor-vehicle or consumer-protection agency and your written agreement.