Compare the lease by cost drivers, not the headline payment
The cleanest lease comparison starts with negotiated selling price, residual value, money factor, fees, tax, and due-at-signing cash. The CFPB buy-versus-lease guide is a useful reminder that lower monthly payments can come with mileage limits and end-of-lease obligations.
"Treat the calculator as a deal sheet checker: if the dealer quote changes one input, re-run the payment and total cost before signing."
Negotiate price first
Ask for the car’s out-the-door price in writing. The FTC says this helps compare offers and catch extra charges.
Watch cash due
A large down payment lowers the monthly payment but increases upfront risk if the vehicle is totaled or the lease ends early.
Read mileage terms
Mileage limits, excess wear, early termination, insurance requirements, and purchase options can change the real cost.
Frequently Asked Questions
This calculator splits the payment into depreciation, finance charge, and tax. The FTC car leasing guide explains that lease payments generally cover expected depreciation, rent charge, taxes, and fees rather than buying the vehicle.
Residual value is the estimated value of the vehicle at lease end. A higher residual usually lowers depreciation and the monthly payment, but it can also change whether buying the vehicle later makes sense.
Yes. Focus on the selling price, fees, trade-in value, mileage allowance, and due-at-signing amount. The CFPB negotiation guide recommends writing down key deal details so offers can be compared clearly.
