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How to Get a New Car Lease in 2025
By Martha White MONEY RESEARCH COLLECTIVE
Deciding what vehicle you want to drive goes beyond just choosing make, model, and trim. You need to consider if you want to purchase a vehicle or lease it.
The best choice for you will come down to your driving habits, preferences, and finances. Generally, both options entail making a down payment, then a fixed monthly payment for the duration of your loan or lease term.
Buying a car means you own it outright (although if you finance it, your lender will hold the title until the car is paid off). Leasing a car means the dealer agrees to give you use of it for a specified time, after which you will have the option to purchase the vehicle or return it.
Leasing a vehicle can be a good option for people who like to drive the newest-model cars, people who don’t drive more than 10,000 or 12,000 miles a year, and people who don’t expect their vehicle to sustain scratches, dents, or damage from kids or pets.
For many people, the appeal of leasing is getting to drive a new car with all the bells and whistles for a lower monthly payment than for a car loan. Leasing also allows you to avoid the maintenance issues that can accumulate with age and mileage if you keep a car for a long time.
If you decide a lease is right for you, here are the steps to take.
Get your finances in order
Your creditworthiness counts when leasing a car. If you have fair or poor credit, work to raise your credit score, which will make you eligible for the best interest rate offered by the dealer.
Also, determine how much you can afford to pay for a down payment on your lease. If you plan to trade in a car you own, educate yourself on the fair market value of that vehicle.
Compare costs
Leasing can give you the opportunity to drive a newer or higher-end vehicle than you could afford if you were buying it; that’s because lease payments are based on depreciation rather than the full vehicle value.
When you crunch the numbers to find out how much leasing will cost you, auto lease calculators can be helpful for determining what payment will fit your budget. In addition to the monthly payment itself, consider two other costs: Maintenance or replacement-part expenses that aren’t covered in the lease agreement, and Insurance, including collision and comprehensive coverage.
Determine what mileage you’ll need
Lease contracts have mileage limits — sometimes below 10,000 miles a year in the case of “low-mileage” leases.
Breaching that limit can be costly — as much as 25 cents per mile for some models, It’s important, then, to accurately calculate how much you drive on a monthly and an annual basis. Consider your commute along with regular trips you take such as visiting family or taking a summer road trip.
Get the best deal you can
As with the price when buying a car, you can haggle over how much a lease will cost you. Shop online or visit showrooms in person to find the vehicle you want.
Once you’ve found a couple of options that suit your needs, go to the dealership so you can negotiate in person, as well as test-drive the vehicle you want to lease. Come armed with figures from your comparison-shopping so you can negotiate a lower price.
Plan for your next ride
Most leases are for 24 or 36 months. When you lease a vehicle, you have the option of buying it at the end of your lease term. The cost to buy out your leased vehicle is the car’s “residual value,” which might be more than its cash value.
With this in mind, have a plan in place for your next vehicle well in advance of your lease’s termination. Your options are:
- Buying out the remainder of your lease
- Leasing a new vehicle
- Purchasing a different car
- Returning the car without replacing it
Return your vehicle
Unless you plan to buy your leased car, prepare to return your vehicle. If it has sustained damage — say, scratches in the paint — you could be charged wear-and-tear fees, so consider making any repairs before you return the vehicle.
Gather all vehicle documentation, including maintenance records, along with spare keys, spare tires and anything else (such as extra floor mats) that came with the car.
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