Lease help
Lease terms that matter more than the monthly payment
A lease can look attractive because the payment is lower than a purchase payment. The real question is what you are paying for the use of the vehicle.
Capitalized cost
The capitalized cost is the negotiated price used in the lease. Treat it like the selling price of the vehicle. A lower payment does not mean much if the cap cost is too high.
Money factor
The money factor is the lease's financing charge. It is not always presented like an interest rate, so it can be harder to judge. Ask for it directly and compare it against the lender's current program.
Residual value and mileage
The residual value estimates what the vehicle will be worth at lease-end. Mileage allowance also matters because excess mileage can become expensive. Make sure the lease fits how you actually drive.
Due at signing
Compare the total amount due at signing, not just the monthly payment. A deal with a lower payment may require more cash upfront, which changes the real cost.