By: Jennifer Brazer
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Fact Checked By: Brittany McMillen
A Guide to Leasing a Car: Tips and Tricks for the Best Deal
Leasing a car is one of those financial decisions that can feel complicated until you break it down—and then it suddenly makes sense, especially if you’re someone who likes flexibility. As the founder of Complete Controller, I’ve spent the last two decades simplifying financial mysteries for entrepreneurs and individuals alike, and I can confidently say that leasing a car isn’t about taking a shortcut—it’s about finding a solution that meets your lifestyle and financial goals.
Whether you’re after a lower monthly payment or the thrill of driving a new car every few years, leasing could be the savvy move you’ve been looking for. Let’s explore the benefits, address the pitfalls, and set you up for success with practical tips and strategies to find the best car lease deals.
Why Lease a Car?
Leasing appeals to drivers who value modern convenience and financial flexibility over vehicle ownership. What’s more, leasing is on the rise. As of 2024, 25.35% of new vehicles were leased, a steady recovery from the pandemic’s lull.
The perks of leasing
Leasing a car offers several clear benefits:
- Lower Monthly Payments: On average, a lease payment is $148 less per month than a car loan payment.
- Access to New Technology: Leasing gives you the freedom to trade up to the latest safety features and vehicle advancements every few years.
- Limited Maintenance Hassle: Most leases span the warranty period, so you’ll avoid major repair bills.
- Flexibility to Switch: Enjoy driving a 2023 Toyota Camry today? In 2–4 years, you could be sitting in an equally sleek 2026 model.
Who benefits most from leasing?
Leasing isn’t for everyone—I’ll admit that. It’s best for:
- Drivers who keep mileage low (think under 12,000–15,000 miles annually).
- People who prefer convenience and aren’t emotionally attached to owning their vehicle.
- Anyone eyeing electric vehicles (EVs): A notable 46.6% of new EV users are leasing instead of buying.
How to Lease a Car for the First Time
So, you’re considering leasing for the first time? Let’s break it down step by step.
Step 1: Research the best vehicles to lease
First, know thyself—and your driving habits. Look for vehicles that match your needs for reliability, fuel efficiency, and resale value. Resources like the Edmunds car leasing guide can help you locate 2023’s top lease vehicles. Popular leasing options often include models with strong residual values, which means lower payments for you.
Step 2: Understand the credit score game
Let me be blunt: your credit score can make or break your deal. A stellar score unlocks the lowest monthly payments. If yours could use a boost, focus on paying down debt and resolving discrepancies on your credit report. For more tips, check out how to manage your credit responsibly.
Step 3: Comparison shop like a pro
Comparison is the soul of financial savings. Before you walk into a dealership, explore tools like the Kelley Blue Book car lease tools to compare offers across dealerships. Ask yourself:
- What’s the lease term? (Shorter leases often result in higher monthly payments but less risk for costly maintenance.)
- How do mileage caps work? Excess miles can trigger fines of up to 30 cents per mile.
- Are there fees hiding in the fine print?
And remember, having accurate financial records on hand can help you weigh each option more effectively.
Understanding Lease Terms and Conditions
I often tell my clients, “Deals are won or lost in the fine print.” Here’s what to watch for when reviewing a lease contract:
Key lease terms to know
- Lease Duration: Most leases span 24–36 months for ideal depreciation coverage.
- Residual Value: The car’s expected resale value at lease-end. A higher residual value means lower monthly payments.
- Mileage Limit: Standard leases allow 12,000–15,000 miles annually. Be realistic about how much you drive.
Avoidable fees
Leases come with additional charges that you should approach with caution:
- Excess Wear-and-Tear Fees: A scratch too many could cost you. Many dealerships offer protection plans but weigh these carefully.
- Early Termination Penalties: Breaking a lease prematurely can result in steep costs. Plan ahead.
Tips for Finding the Best Car Lease Deals
Let’s talk strategy—because the best leases don’t find you; you find them.
Be intentional about timing
Holiday sales events—such as Labor Day or year-end clearances—are golden windows for snagging deals on leases. Dealerships are eager to meet quotas, and you can leverage this urgency to your advantage.
Learn how to negotiate a lease
As a business owner, I know the power of negotiation. Here are three questions you should never forget to ask:
- What’s the total cost of the lease, including fees?
- Can any fees (acquisition or documentation) be reduced?
- Is there an option to purchase the vehicle at the end of the term?
For more ideas, check out these money-saving tips for leasing a car.
Exploring Alternative Leasing Options
Not all leases are created equal. Depending on your goals, one of these alternatives may make sense:
Short-term car leases
If you’re looking to drive temporarily, short-term leases (under 24 months) can be a convenient option. But beware of higher monthly costs due to accelerated depreciation and fees.
Used car leasing
Leasing a certified pre-owned vehicle might save you money upfront—think lower depreciation—but the risks include limited warranty coverage and potential maintenance headaches. Proceed cautiously.
Conclusion
Leasing a car isn’t just about numbers on a contract; it’s about lifestyle alignment. If you value flexibility, drive fewer miles, and love staying current with technology, leasing could be your financial sweet spot. It’s also an opportunity to maximize tax benefits if used strategically for business purposes.
At Complete Controller, we’re all about empowering smart financial decisions. Whatever path you choose, remember: in finance, knowledge is power, and you hold the wheel.
Let’s get you on the road to your perfect lease. Ready to learn more? Start your journey with my team at Complete Controller.
FAQs
What Happens at the End of a Lease?
When a lease ends, you have three choices:
- Hand the car back with no further obligations (as long as it’s in good shape).
- Renew a similar lease term.
- Buy the car at its residual value, which is pre-determined in your lease agreement.
Can You Lease with Bad Credit?
Yes, but it will likely cost you in higher fees and fewer choices. If you have bad credit, exploring a cosigner option or improving your credit first is ideal.
Is Leasing Better Than Buying?
The answer depends on your needs. Leasing is best for lower payments and short-term driving flexibility. Buying is the way to go for long-term value and ownership benefits.
Sources
- S&P Global. “When will car leasing be cool again?“ December 14, 2023.
- Simi Valley Chrysler Dodge Jeep Ram. “What is the Best Car Lease Term?“ October 16, 2024.
- Bankrate. “The Basics Of A Car Lease Agreement.“ January 8, 2024.
- Edmunds. “10 Steps to Leasing a New Car.“ July 1, 2024.
- Experian. “Most Popular Cars to Lease in 2024.“ November 4, 2024.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
