The lease desk, translated
A lease payment is depreciation plus interest, and the interest rate is printed as a decimal called the money factor: multiply it by 2,400 to see the APR you are really paying. This site explains every number on the worksheet, what leasing costs by brand and state, and how to get out when life changes. Complete Car Lease is not a dealer, lessor, or broker. We are a free service that republishes manufacturer lease offers and connects shoppers with a participating dealer.
If you read one page, read how leasing a car actually works. It links to everything else here. For what programs are running right now, the live deals boardcarries every manufacturer’s advertised lease examples with their expiry dates.
- Lease payment calculatorDepreciation, rent charge, and the monthly payment from the five numbers that set it — the same math the finance office runs.
- This month’s best advertised dealsThe ten strongest manufacturer lease examples in the country right now, ranked, with expiry dates.
Start here
The main guides
Each one covers a single stage of leasing end to end.
- What happens at the end of a car lease?At lease end you return, buy, or roll into a new lease. Inspections start 60 to 90 days out at most captives. The full decision guide.
- What fees do you pay when you lease a car?Every lease fee, birth to death: acquisition ($595-$1,095), disposition ($350-$495), and what's due at signing, during the term, and at lease end.
- Is leasing an EV a good idea in 2026?The $7,500 EV lease credit ended September 30, 2025. EV lease penetration fell from 60.63% to 46.07% in a year. What still works in 2026, explained.
- How does leasing a car work?How a lease works: you pay a car's depreciation plus a rent charge for 24 to 39 months, not the full price. The 4 stages, and what you actually sign.
- How do you get out of a car lease early?Four exits get you out of a car lease early, ranked cheapest to priciest: transfer, third-party sale, buyout, termination. Worked $25,489.60 example.
- Can you negotiate a car lease, and how?Yes, you can negotiate a car lease: the selling price and money factor markup are negotiable, but the residual value is fixed. The 7-number deal check.
- What credit score do you need to lease a car?The average new-lease credit score is 749, and 84.9% of leases go to prime borrowers. What approval takes at each tier, per Experian Q1 2026 data.
What it costs
Fees, taxes, and real numbers
By brand and by state. Sourced, dated, and re-checked against the source.
- How much is the acquisition fee at each lease company?Acquisition fees run $595-$1,095 by brand. Verified figures: $650 at Toyota, $645 at Ford, $695 at Tesla and GM, up to $1,095 at Porsche.
- What is the average car lease payment right now?The average new lease ran $619 a month in Q1 2026 vs $770 for loans, a $151 gap. Payment distributions, segment averages, and model-level spreads.
- What is the disposition fee for each brand?Disposition fees verified from each captive's own site: $350 at Toyota, $395 at Nissan, up to $495 at GMC, the highest confirmed base fee found.
- What does each brand charge per extra mile?Toyota, Honda, and Ford charge $0.15 a mile over your lease limit. Hyundai caps at $0.20; luxury brands run $0.25 to $0.30. Rates for 13 brands.
- What does each lease company count as excess wear?Honda charges for dents over 1.5 inches; Ford and GM Financial allow 4. Compare exact wear thresholds across 9 lease captives, verified in August 2026.
- What do extra miles cost up front vs at lease end?No captive, not even Toyota, publishes an up-front extra-mile price. Turn-in overage rates run 15 to 30 cents a mile by brand, checked in August 2026.
- Do you pay sales tax on a lease buyout in my state?A lease buyout is taxed as a new purchase in most states, on the buyout price, not the car's original cost. Rates run from 3% to 7.25% across 15 states.
- How late can a lease payment be before it counts?Lease grace periods and late fees are set by contract and state law, not published by brand. Credit bureaus commonly report at 30 days past due.
- Which lease companies allow transfers, and what do they charge?GM Financial's own site lists a $625 lease transfer fee. Most captives, including Ford, BMW, and Toyota, publish little or nothing about transfers.
- Which lease companies offer multiple security deposits?Which captives actually offer multiple security deposits: Toyota confirms up to 9, BMW up to 7. Most brands publish no MSD program at all.
- How is a leased car taxed in each state?Car lease tax rules differ sharply by state. Texas taxes 6.25% up front, most states tax the monthly payment, and 1 of 5 "no-tax" states isn't tax-free.
- Which lease companies let you sell to CarMax or Carvana?Since July 2021, Honda, GM Financial, Ford, Nissan, and BMW have blocked third-party lease payoffs. Toyota is a notable exception outside the Southeast.
Questions
Answered directly
The answer is the first sentence, not the last paragraph.
- When is the best time to lease a car?Month-end timing is a minor lease lever. A closeout with a lower residual cost $176 more over 36 months than a smaller discount, here is what matters more.
- Should you buy extra miles up front or pay at lease end?Buying extra lease miles up front usually beats the 15 to 30 cent turn-in rate, but some captives never refund the miles you don't drive.
- Can dealers mark up the money factor?Dealers can mark up the money factor above the buy rate and keep the spread. See a real example: a 0.0006 markup on a $27,500 lease costs $920 over 36 months.
- Can you lease a car in a different state than you live?Yes, you can lease in another state, but tax and registration follow where you live, and 2 rules usually block the savings shoppers expect.
- Can you lease a car with bad credit?Leasing is a prime-credit product: average score 749, 84.9% prime or better, subprime 4.22%. What a lower score actually changes, and by how much.
- Can you negotiate a lease buyout price?Your contract states a fixed buyout price, but 2 real channels add flexibility: third-party sales and, at some captives, direct requests. Full walkthrough.
- Can you negotiate the residual value on a lease?No, a lease's residual value is fixed by the leasing company for every dealer in that program. What you can negotiate instead, with a worked 36-month example.
- Can you return a lease a few months early?Returning a lease early is not automatically free. Under Regulation M (12 CFR 1013), an early termination charge can run into the thousands.
- How does co-signing a car lease work?A co-signer carries the same legal duty as the lessee. Both credit files are affected, and the co-signer owes 100% of the balance if payments stop.
- Can you lease a demo or loaner car?Yes, at some dealers. A demo or loaner can lease for $3,500 or more off a comparable new unit, but mileage and warranty start dates change the math.
- Can you have equity in a leased car?Yes. A leased car has equity when its market value beats the buyout price. Learn the 3-part buyout formula and a 10-minute way to check yours.
- Do over-miles on a lease actually matter?Over-miles cost 15 cents a mile at Toyota, Honda, and Ford, and 25 to 30 cents at luxury brands. See when to pay it, buy out early, or exit instead.
- Does a lease transfer get you off the hook?None of the 4 captives we checked, GM Financial, Ford Credit, BMW Financial Services, or Toyota, state if a lease transfer ends your liability.
- Does leasing a car build credit?Yes, a lease reports as an installment account like a loan. The average new-lease score was 749 in Q1 2026; on-time payment is what builds credit.
- Did the $7,500 EV lease tax credit end?The federal credit that funded up to $7,500 in EV lease savings ended for vehicles acquired after September 30, 2025, under Public Law 119-21.
- Why are EV leases sometimes cheaper than gas leases?The $7,500 EV lease credit ended September 30, 2025. Now captives set aggressive residuals to keep EV lease payments low, absorbing the risk.
- Should you fix damage before returning a lease?Compare an independent repair quote against your captive's exact wear threshold, like Honda's 1.5-inch dent limit, before you spend a dollar fixing anything.
- Is GAP insurance included in a car lease?GAP handling varies by lessor: Honda includes it in every lease with a $1,500 wear waiver, but many other captives require buying it separately.
- How is a car lease taxed in my state?Car lease tax splits into 3 regimes: most states tax the monthly payment, Texas taxes the full price up front, and a few states charge none.
- How does a car lease buyout work?A lease buyout means paying the residual value plus a purchase-option fee and tax. See a worked $22,122 example and when buying out beats returning it.
- How does a lease transfer work?A lease transfer moves your payment to a new person once your captive approves them. GM Financial charges $625; expect weeks, not days.
- How is a lease payment calculated?A lease payment is depreciation plus a rent charge: (cap cost + residual) x money factor. Full worked example: $445.03 a month, step by step.
- How many miles a year should you lease for?Calculate your real mileage instead of guessing. Guessing low costs 15 to 30 cents a mile at turn-in, more per mile than a computed $24 monthly cushion.
- Can you avoid the disposition fee?You can avoid a lease's disposition fee two ways: buy the car, or lease another from the same brand within Toyota and Nissan's confirmed 30-day window.
- How do you evaluate an EV lease deal now?Evaluate a 2026 EV lease ad with the seven-number deal check. The $7,500 credit ended in 2025, so discounts are now manufacturer cash, not a subsidy.
- How do you spot a bad lease deal?4 failure patterns disguise a bad lease deal: a marked-up money factor, buried negative equity, conditional rebates, and payment-only haggling.
- Is excess wear-and-tear protection worth buying?Honda already waives up to $1,500 in wear charges on every lease it writes. Weigh a paid protection plan against that and your own driving habits.
- Should you use a lease broker?Lease brokers charge a flat fee or a markup, never a standard rate. See what they do and how the seven-number check saved $1,100 in one comparison.
- How do you finance a lease buyout?A lease buyout loan is a used-car loan, not a new-car loan. Used rates averaged 11.43% APR versus 6.39% for new in Q1 2026, so cross-shopping lenders matters.
- Can you extend a car lease?Some captives allow 2 kinds of lease extension past the end date, month-to-month or formal, and both can risk a warranty gap or mileage overage.
- What lease incentives can stack, and which are conditional?Lease incentives include standard, loyalty, conquest, and eligibility-gated cash. The FTC warned 97 dealer groups in 2026 to state conditions up front.
- What is a lease pull-ahead program?A lease pull-ahead program is a captive's targeted, episodic invite to end a lease early, not 1 of the 3 standard lease-end choices you can request anytime.
- What happens at a lease return inspection?An inspector, often not the dealer, checks for wear 60 to 90 days before lease end. The damage bill commonly arrives weeks after you return the keys.
- What counts as normal wear and tear on a lease?Normal wear is what ordinary driving causes over the term. The dime test is folklore; Honda bills dents over 1.5 inches, Ford allows up to 4.
- Can you lease a car through your business?Yes, a business can lease a vehicle, but a new LLC or S-corp usually needs the owner's personal guarantee on a 36-month lease anyway.
- Is it better to lease or buy a car?Leasing averaged $619 a month versus $770 for a loan in Q1 2026, but the cheaper payment is not always the cheaper total over time.
- Will the dealer forgive excess mileage on my lease?No captive has a standing mileage-forgiveness rule. Two real levers replace it: same-brand loyalty incentives, or a buyout that erases a 15 to 30 cent charge.
- Can you move to another state with a leased car?Moving out of state with a leased car takes 4 steps: re-register, check the new tax rules, notify the leasing company, and update insurance.
- What are multiple security deposits (MSDs)?Multiple security deposits (MSDs) are refundable deposits that buy down your lease's money factor. A worked 5-deposit example saves $462 over 36 months.
- What is a one-pay lease and when does it make sense?A one-pay lease swaps monthly payments for a lump sum at signing and a lower money factor, saving $1,419 in one worked 36-month example.
- Why is my payoff quote different from my buyout price?A payoff quote adds remaining payments to the buyout amount, so it runs higher than the lease-end price. See both figures worked on one $33,500 lease.
- Can you roll negative equity into a lease?Negative equity from a trade-in can be rolled into a lease's capitalized cost. A worked example shows $2,500 added raising a $445 payment to $520 a month.
- Can you sell your leased car to CarMax or Carvana?Yes, where your captive allows it. A buyer pays your payoff directly and you keep the difference; Southeast Toyota is 1 of the captives that blocks it.
- Should you put money down on a car lease?Money down on a lease lowers your payment but is usually gone if the car is stolen or totaled. A $33,000 example shows the real math and a safer alternative.
- Is taking over someone else's lease a good deal?Taking over a lease inherits whatever mileage is left, wear liability from before you owned it, and lease-end fees, typically $350 to $500.
- Is the 1% rule still a good lease deal test?The 1% rule says a lease payment near 1% of MSRP is a good deal. Tested across 4 price points with 2026 money factors, it mostly misses.
- What do you need to lease a car?Leasing a car takes 4 things: a driver's license, insurance meeting the company's minimums, income proof, and a credit check built around 749 scores.
- What is actually due at signing on a lease?Due at signing usually means the first payment, an acquisition fee ($595 to $1,095), a doc fee, and title costs. Zero down is not zero due at signing.
- What happens if you crash a leased car?Your own insurer pays for the repair, not the leasing company. Some captives flag non-factory parts or a poor repair at return, even after 1 clean fix.
- What insurance do you need for a leased car?A leased car needs more than your state minimum: commonly $100,000/$300,000/$50,000 liability plus low-deductible comprehensive and collision coverage.
- What is a money factor on a lease?The money factor is your lease's interest rate in disguise. Multiply by 2,400 for the APR: 0.00275 is about 6.6%. How to find yours and check for markup.
- Why is the same car cheaper to lease in another state?Lease payments vary by region for 3 real reasons: manufacturer incentives, different state tax rules, and local dealer competition on price.
- Can you write off a car lease?Yes, within limits. A business can deduct the business-use share of lease payments, but a $62,000 IRS threshold can trigger a small annual add-back.
When it goes wrong
Specific situations, handled calmly
Job loss, totaled cars, over-miles, deployments. Mechanics first, no shame.
- I'm returning my lease and can't afford the fees.The lease-end bill often arrives weeks after drop-off, not on the spot. Learn the pre-inspection fix, real payment-plan options, and the 7-year FCRA risk.
- What should I do if I can't make my lease payment?You have 4 exits before repossession: hardship deferral, lease transfer, third-party sale, early termination. Voluntary surrender is the last resort.
- Who keeps the leased car in a divorce?A divorce decree is between 2 spouses. Learn why the leasing company doesn't have to honor it, and the real paths to change who's on the lease.
- My insurance was canceled but my lease requires coverage.A lease treats a coverage lapse as default. Learn the 2 ways coverage ends, why force-placed insurance costs more, and how to fix a gap fast.
- My lease is ending and the car is worth more than the buyout.Yes, that gap is real equity worth up to $6,112.52 in one worked example. Buy it out and resell, sell to a third party, or roll it into your next lease.
- What happens if my leased car is repossessed?Repossession or voluntary surrender: the leasing company sells your car and bills the shortfall plus fees, a debt that can stay on credit for 7 years.
- My leased car was totaled. Who pays what?Your insurer pays actual cash value first, the leasing company's payoff is separate. GAP can cover a shortfall, like $4,541.60 in one hypothetical.
- Can I end my car lease if I'm deployed or get PCS orders?Federal law lets servicemembers end a car lease penalty-free after PCS or deployment orders of 180 days or more, under 50 U.S.C. 3955.
- I'm leaving the country. What do I do with my lease?You cannot legally export a leased car. The 3 real exits are a transfer, a third-party sale, or a costly negotiated early termination.
- I'm way over my lease miles with a year left. What now?Way over your lease miles with a year left? Compare 3 real paths: pay overage at return, buy out early, or sell the lease, with real math.
- I just signed a lease and regret it. Can I cancel?No federal law lets you cancel a signed car lease. What you can cancel instead, and the 3 real ways to unwind a lease you regret.
- What happens to a car lease when the lessee dies?A lease becomes a debt of the estate. A true co-lessee can keep it directly; without one, captive policy on the 2 remaining paths varies.
Glossary
The words on the lease worksheet
Terms you first meet at the dealer desk, defined with the math shown.
- What is an acquisition fee on a car lease?An acquisition fee is a one-time charge to open a lease, commonly $595 to $1,095 by brand. Confirmed Toyota, Ford, GM, and Porsche figures inside.
- What is a cap cost reduction on a lease?Cap cost reduction is cash, a trade-in, or an incentive that lowers a lease's capitalized cost. A $1,500 example shows the real payment math.
- What is capitalized cost on a car lease?Capitalized cost has 2 versions: gross (price plus rolled-in fees) and adjusted (minus reductions). A $650-fee, $1,500-reduction example shows both.
- What is a captive lender?A captive lender is the manufacturer's finance arm, like Toyota Financial Services, that sets the money factor, residual, and fees from $595 to $1,095.
- What is a disposition fee on a car lease?A disposition fee is charged when you return a leased car, confirmed at $350 to $495 by brand. Most captives waive it if you buy the car or re-lease.
- What is due at signing on a car lease?Due at signing bundles the first payment, an acquisition fee, and more. A "zero down" lease can still total $1,048 or more before doc fees and title.
- What is an early termination fee on a lease?An early termination fee equals the remaining lease balance minus the car's realized value. Regulation M requires disclosure; one example totals $1,505.
- What counts as excess wear and use on a lease?Excess wear and use is damage beyond a captive's own published thresholds, not a guess. Honda bills dents over 1.5 inches; Ford allows up to 4.
- Is GAP coverage included in a car lease?GAP coverage closes a lease's total-loss shortfall. Honda includes it in every lease with a $1,500 waiver; many other captives require buying it.
- What is the lease buyout price?The lease buyout price is what you owe to own the car at the scheduled end of the term: residual value plus a fee and tax, totaling $19,133 on one example.
- Can a lease end with equity?Lease-end equity is the gap between a car's market value and its buyout price. A hypothetical $30,000 lease example works out to $4,432.00.
- Can a dealer mark up the money factor on a lease?A dealer can mark up a lease's money factor above the buy rate and keep the spread. A $31,000 hypothetical example: $469.99 vs $494.56 a month.
- What is a money factor?A lease's interest rate written as a decimal. Multiply by 2,400 for the APR: a 0.00275 money factor is about 6.6%. The rent charge formula behind it, worked.
- What is the difference between MSRP and selling price on a lease?MSRP sets residual value; selling price sets the depreciation charge. A worked $35,000 example shows negotiating price never moves the $19,250 residual.
- What are multiple security deposits on a lease?Multiple security deposits (MSDs) are refundable deposit units that buy down a lease's money factor. A worked example shows $423 saved.
- What is negative equity on a car lease?Negative equity is a trade-in's loan payoff exceeding its value. Rolled into a $31,500 lease, $2,500 raises the payment from $445.03 to $520.22.
- What is a one-pay lease?A one-pay lease trades monthly payments for a discounted money factor. A $32,500 example saves $1,419, but prepaying raises total-loss risk without GAP.
- What is a payoff quote on a car lease?A payoff quote is what you owe to end a lease early: the lease-end buyout price plus remaining payments. Worked on a hypothetical $26,900 lease.
- Are you still liable for a lease after you transfer it?Post-transfer liability is whether you stay on the hook after a lease transfer. None of 4 captives checked publish a clear release policy for it.
- What is a lease pull-ahead program?A lease pull-ahead is a captive's episodic, targeted invite to end a lease early, not 1 of the 3 standard lease-end choices you can request anytime.
- What is a rent charge on a car lease?The rent charge is a lease's interest cost: (adjusted cap cost + residual value) x money factor. Computed here at $151.75 a month on $48,950.
- What is residual value on a lease?Residual value is a car's predicted worth at lease end, set at signing. On a hypothetical $28,000 lease, a 58% residual works out to $16,240.
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