The Best New Car Lease Deals in 2024 (April 2024 Updates)

The Best New Car Lease Deals in 2024 (April 2024 Updates)

We dug through the latest new car lease offers to find you the very best lease deals in April 2024. Skip ahead to your preferred auto brand to see what their best lease deals are this month. Check back for updates, as automakers typically announce new lease deals at the start of every month.

Note: These lease deals are for customers in the U.S., and are subject to approval.

Lease Deals By Brand in 2024

BMW Lease Deals

  • BMW 228i: $539 per month for 36 months with $4,279 due
  • BMW 330i: $589 per month for 36 months with $4,639 due
  • BMW X3: $629 per month for 36 months with $4,829 due
  • BMW i4: $499/month for 36 months with $4,599 due

See current lease offer details from BMW.

Buick Lease Deals

  • Buick Envista: $199 per month for 24 months with $3,819 due at signing
  • Buick Enclave: $319 per month for 24 months with $4,149 due at signing
  • Buick Envision: $269 per month for 24 months with $3,449 due at signing

See current lease offer details from Buick.

Cadillac Lease Deals

The best Cadillac lease deals are for current lessees of 2018 or newer Cadillac models.

  • Cadillac XT4: $439/month for 36 months with $3,799 due
  • Cadillac XT5: $509/month for 39 months with $4,259 due
  • Cadillac XT6: $559/month for 24 months with $4,839 due

See current lease offer details from Cadillac.

Chevrolet Lease Deals

The best Chevrolet lease deals are for current lessees of 2018 or newer Chevrolet models. The amount due at signing is considerably lower for current lessees. See details at Chevrolet.com.

  • Chevrolet Trax: $338/month for 36 months with $838 due
  • Chevrolet Trailblazer: $269 per month for 36 months with $2,819 due (2023)
  • Chevrolet Equinox: $269 per month for 24 months with $4,089 due
  • Chevrolet Equinox EV: $469 per month for 36 months with $2,939 due
  • Chevrolet Blazer: $279 per month for 24 months with $2,819 due (2023)
  • Chevrolet Traverse: $369 per month for 36 months with $4,449 due
  • Chevrolet Colorado: $369 per month for 36 months with $4,349 due
  • Silverado 1500 Crew Cab 4WD LT: $389 for 36 months with $5,679 due
  • Chevrolet Bolt EUV: $369/month for 36 months with $6,659 due

See current lease offer details from Chevrolet.

Chrysler Lease Deals

  • Chrysler Pacifica: Chrysler is not advertising any lease deals at this time.

See current lease offer details from Chrysler.

Dodge Lease Deals

  • 2024 Dodge Hornet R/T Plus AWD: Lease for $249 for 24 months with $3,999 cash or trade down. [CAREDGE EXCLUSIVE]. Contact our team for details.
  • Challenger: $389/month for 42 months with $5,699 down
  • Charger: $429/month for 42 months with $5,349 due

See current lease offer details from Dodge.

Ford Lease Deals

These are Ford lease deals in April:

  • 2024 F-150 XLT: $532/month for 48 months with $5,494 due
  • 2024 Explorer XLT: $571/month for 36 months with $4,940 due
  • 2023 Mustang Mach-E: $413/month for 39 months with only $4,583 due
  • 2024 Edge: $399/month for 48 months with $4,515 due

(see Ford financing offers here).

See current lease offer details from Ford.

GMC Lease Deals

GMC offers the best loan terms to current GMC lessees. If you’re not a returning lease customer, the amount due at signing is likely to be higher.

  • GMC Acadia: $269 per month for 24 months with $3,969 due
  • GMC Canyon: $459/month for 36 months with $3,629 due
  • GMC Terrain: $359 per month for 39 months with $0 due
  • GMC Sierra 1500: $369 per month for 24 months with $4,859 due

See current lease offer details from GMC.

Honda Lease Deals

Honda is offering low payment lease deals in April:

  • Honda Civic Sedan: $239 per month for 36 months with $3,399 due
  • Honda Accord: $249 per month for 36 months with $3,499 due
  • Honda CR-V: $299 per month for 36 months with $3,399 due
  • Honda CR-V Hybrid: $359 per month for 36 months with $3,699 due
  • Honda HR-V: $269 per month for 36 months with $3,199 due
  • Honda Pilot: $439 per month for 36 months with $5,499 due
  • Honda Passport: $399 per month for 36 months with $4,899 due
  • Honda Ridgeline: $339 per month for 36 months with $3,899 due

See current Honda lease offer details.

Hyundai Lease Deals (36 months)

These are the best Hyundai lease offers in April. Note: Hyundai’s website says that offers will be updated soon.

  • Hyundai Palisade: $379 per month with $3,999 due
  • Hyundai Venue: $229 per month with $3,499 due
  • Hyundai Elantra: $199 per month with $3,499 due
  • Hyundai Sonata: $269 per month with $3,499 due
  • Hyundai Kona: $232 per month with $4,012 due
  • Hyundai Tucson: $259 per month with $3,999 due
  • Hyundai Santa Fe (2023): $269 per month with $3,999 due
  • Hyundai Santa Cruz: $360 per month with $4,011 due

See current Hyundai lease offer details.

Jeep Lease Deals

  • 2024 Jeep Compass 4×4: Lease for $361 for 42 months with $3,999 cash or trade down.
  • 2024 Jeep Wrangler: Lease for $339 for 36 months with $4,899 cash or trade down.
  • 2024 Jeep Grand Cherokee: Lease for $459 for 39 months with $4,899 cash or trade down.

Kia Lease Deals

Interestingly, in April Kia is advertising 24-month leases for nearly the same payment as previous 36-month leases.

  • Kia Seltos: $249/month for 24 months with $2,999 due
  • Kia Forte: $209/month for 24 months with $2,799 due
  • Kia K5: $289/month for 24 months with $3,199 due
  • Kia Sorento: $299/month for 24 months with $3,499 due
  • Kia Carnival: $389/month for 24 months with $3,499 due
  • Kia EV6: $249/month for 24 months with $3,999 due
  • Kia EV9: $599/month for 36 months with $5,999 due
  • Kia Telluride: $449/month for 36 months with $3,499 due

See current Kia lease offer details.

Lexus Lease Deals

  • 2024 NX 350 AWD: $508/month for 36 months with $3,999 due
  • 2024 RX 350 Premium AWD: $539/month for 36 months with $4,999 due
  • 2024 TX AWD: $609/month for 36 months with $4,999 due

See Lexus for details. 

Lincoln Lease Deals

  • Lease the Corsair for $492/month for 48 months with $4,501 due
  • Lease the Nautilus for $528/month for 48 months with $5,406 due

See Lincoln for details.

Mazda Lease Deals

These are the best Mazda lease deals in April:

  • 2023 Mazda CX-30: $199 per month for 36 months with $4,499 due
  • 2024 Mazda CX-5: $269 per month for 36 months with $5,249 due
  • 2024 Mazda CX-50: $259 per month for 36 months with $5,319 due
  • 2024 Mazda CX-90: $369 per month for 33 months with $4,979 due

See current lease offer details from Mazda.

Nissan Lease Deals

  • Nissan Altima SV: $299 per month for 36 months with $2,999 due
  • Nissan Rogue S AWD: $315 per month for 36 months with $4,732 due
  • Nissan Murano SV AWD: $499/month for 36 months with $3,789 due
  • Nissan Ariya Engage FWD: $259/month for 36 months with $4,139 due

See current lease offer details from Nissan.

Ram Lease Deals

As of April 4, Ram has yet to release this month’s lease deals. Check back for updates.

See current Ram lease offer details.

Subaru Lease Deals

  • Subaru Legacy: $269 per month for 36 months with $3,255 due at lease signing
  • Subaru Ascent: $419 per month for 36 months with $3,319 due at signing
  • Subaru Outback: $305 per month for 36 months with $3,055 due
  • Subaru Forester: $319 per month for 36 months with $2,760 due at signing
  • Subaru Crosstrek: $299 per month for 36 months with $2,549 due

See current Subaru lease offer details.

Tesla Lease Deals

  • Tesla Model 3 RWD: $329 per month for 36 months with $2,999 due at signing
  • Tesla Model Y RWD: $399 per month for 36 months with $4,500 due at signing
  • Tesla Model Y Long Range AWD: $479 per month for 36 months with $4,500 due at signing

See Tesla lease offers at Tesla.com.

Toyota Lease Deals

In April, Toyota’s lease deals feature low payments for popular Toyota crossovers.

  • Toyota RAV4: $329 per month for 36 months with $4,999 due
  • Toyota Corolla: $249 per month for 39 months with $3,599 due
  • Toyota Camry: $299 per month for 36 months with $4,999 due
  • Toyota Prius: $299 per month for 36 months with $3,999 due
  • Toyota Highlander: $459 per month for 36 months with $4,999 due
  • Toyota Grand Highlander: $549 per month for 36 months, $4,999 due
  • Toyota Sienna: $429 per month for 39 months with $4,899 due

See Toyota lease offer details. 

Volkswagen Lease Deals

This month, Volkswagen finally has attractive lease offers:

2023 ID.4 electric SUV: $379/month for 36 months, $4,499 due

2024 Taos S: $249/month for 36 months, $3,399 due

2024 Tiguan: $289/month for 36 months, $2,999 due

2024 Atlas Cross Sport: $389/month for 36 months, $4,999 due

$13,000 lease bonus for remaining 2023 Volkswagen ID.4

See Volkswagen for details.

Volvo Lease Deals

Volvo is offering some great leases in April:

C40 electric crossover: $483/month for 36 months with $3,933 due

XC40 Recharge electric crossover: $565/month for 36 months with $4,015 due

XC40 B5 AWD Core: $489/month for 36 months with $3,989 due

See Volvo lease offer details.

XC60 B5 AWD Core Dark: $599/month for 36 months with $4,409 due

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The 10 Best Cars to Lease in 2022

The 10 Best Cars to Lease in 2022

Buying a car is tricky in today’s market, and even leasing can feel like three-dimensional chess these days. Although 2022 isn’t the best time in history to buy or lease a car, some shoppers don’t have a choice. It doesn’t help that the average new car payment is a bank-draining $650 a month in 2022. Fortunately, leasing provides a window of opportunity for those who don’t mind what is essentially a long-term rental. These are the best car lease deals in 2022. All examples assume a 5% down payment at signing.

Not sure where to start? Head over to our CarEdge complete guide to leasing to find out what leasing a car is, and when it’s a good idea.

2022 Mitsubishi Outlander PHEV

mitsubishi outlander lease

The plug-in hybrid (PHEV) version of the Mitsubishi Outlander sells for an average MSRP of $40,356 depending on the trim. If leasing is an option, you can get into this versatile SUV for $412 per month with an allowance of 12,000 miles a year. How does a plug-in hybrid work? The Outlander can drive 24 miles on pure electricity (which is much cheaper than gas), and then can drive another 300 miles as a regular hybrid system with the help of a combustion engine. It’s kind of the best of both worlds, especially for a lease.

2022 Hyundai Kona EV

hyundai kona lease deal

The Kona EV made our CarEdge list of the five best electric cars you can get for under $50,000. The Hyundai Kona EV has an average MSRP of about $40,000, and you can lease one for just $401 a month. The Kona is a great alternative for those considering the Chevy Bolt. Plus, it comes with Hyundai’s unbeatable 10 year, 100,000 mile battery and electric powertrain warranty. This front-wheel drive subcompact crossover gets 258 miles on the charge, exceptional range for a budget EV. Some owners get over 275 miles on a single charge. 

2022 Toyota Tundra 4WD 

toyota tundra lease deal

If you can find one that’s not marked up, the 2022 Toyota Tundra 4WD is $51,400 at MSRP. If you’re open to leasing, you can sign up for $525 a month for 36 months and 36,000 miles. That’s $125 less per month than today’s average monthly finance payment. The downside? The Tacoma gets 14 miles per gallon when gas prices are well over $4 per gallon.

2022 Toyota Tacoma 

toyota tacoma lease deal

Last year, the Toyota Tacoma won Best Buy of the Year award from Kelly Blue Book in the mid-size truck category, and now you can lease a 2022 model for under $400 a month. If you buy, the 2022 Tacoma has an average MSRP of $36,300. If you lease, monthly payments are as low as $361. 

2021 Honda Civic Type R

honda civic lease deal

With an MSRP of $41,900, it’s a pleasant surprise that you can get into a Civic Type R lease for just $410 a month. Over 300 horsepower propels this budget racer to 60 mph in just 5.3 seconds. The challenge is finding one on a dealer lot.

2021 Chevrolet Bolt

2021 chevy bolt

Pre-facelift, the 2021 Chevy Bolt was the least ‘sexy’ electric vehicle on the market. It may look bland, have slow charging, and be subject to one of the most scrutinized recalls in recent memory, but you can lease one for cheap. The 2021 Chevrolet Bolt sells for $38,567 (average MSRP across trim levels), but you can lease one for $367.63 a month. Just make sure that you have proof from the dealer that your Bolt has already had the recall fix. Learn more about the Chevy Bolt recall and vehicle specs here.

2022 Chevrolet Bolt

2022 Chevrolet Bolt EUV

The 2022 model year gets a refreshed, modernized front fascia and improved interior. Sadly, driving range figures for the 2022 year remain the same. At least it doesn’t look like a cheap appliance anymore. Here’s the great news: the 2022 Chevrolet Bolt has a lower MSRP than the 2021 model. GM electric vehicles no longer qualify for the federal EV tax credit, so GM must have felt compelled to keep pricing competitive. Whether you go for a 2021 or 2022 Bolt, ensure that the car has had all of the mandatory fire-related recall fixes completed. 

You can lease a 2022 Chevy Bolt for $312 a month for 36 months. If you’re considering buying, remember that the $33,595 price tag will not get any help from the federal tax credit. State and local incentives may apply, depending on where you live. Here’s everything you need to know about the 2022 Chevrolet Bolt.

2022 Chevrolet Bolt EUV

2022 Chevrolet Bolt EUV
2022 Chevrolet Bolt EUV

The Bolt EUV is the slightly larger new sibling to the regular Chevy Bolt EV. The EUV sells for $36,245, but you can lease one for just $341 per month. Range is 247 miles, but charging isn’t that great. Learn more about the Bolt here.

2022 Kia Niro EV 

kia niro EV lease

The 2022 Kia Niro EV has an average MSRP of $43,500, but it can be all yours (for 36 months) for just $395 with a lease. There’s generous lease support for the Niro for a few reasons. The Kia Niro is about to receive a major upgrade in 2022, and it’s being overshadowed by the new Kia EV6 electric crossover. The Niro can make it 239 miles on a charge, and charging from 0-80% takes about one hour at a DC fast charger. However, if you plug it in at home, it should work just fine for those who drive less than 50 miles a day.

2021 BMW i3 

bmw i3 lease

Why is the 2021 BMW i3 such a phenomenal deal in 2022? It was recently discontinued, but it’s still a great option if you’re looking for an affordable, low-emissions way to get around town. Keep in mind that it’s no Tesla. The i3 gets 200 miles of range, 153 of which are on pure electricity. Not to be confused with the new BMW iX3, the 2021 i3 has an optional range extender (on the BMW i3 REX version). All trims considered, the 2021 BMW i3 has an average MSRP of $48,970 while supplies last.

If you’re looking for an all or mostly-electric bargain lease, you can lease the 2021 BMW i3 for $425/month. That’s well under the budget-friendly 10% threshold for a smart lease.

Have questions or comments about the best car lease deals in 2022? Or maybe you’d simply love to connect with fellow car buyers and auto enthusiasts? Check out the CarEdge Community at caredge.kinsta.cloud!

What Does It Mean to Lease a Car? The Consumer’s Guide to Leasing

What Does It Mean to Lease a Car? The Consumer’s Guide to Leasing

Buying a new car is rarely a wise financial decision. Truthfully, cars are depreciating assets (unless there’s a chip shortage and car prices appreciate). That means from the moment you drive off the lot with your shiny new wheels, you’re actually losing money. 

For some car buyers, leasing is a great way around depreciation. However, leasing isn’t for everyone. For many consumers, it’s worth asking the question “what does it mean to lease a car?”. In this guide to leasing a car, we’ll explain all there is to know about leasing, and how to shop smart in 2024.

What Is a Car Lease?

2024 Ford Mustang Mach-E lease
Ford Mustang Mach-E

The last time a car commercial grabbed your attention with an attractive lease deal, it probably included a whirlwind of rates, payments and terms crammed into thirty seconds. What exactly is a car lease? An auto lease is a long term rental agreement for a vehicle that is subject to specific terms and conditions. The lease terms are agreed upon by the customer and dealership (or automaker in the case of Tesla, Rivian and Lucid), and a third-party leasing company who actually takes ownership of the vehicle (and then leases it to you).

There are four parts to a lease: 

1) The capitalized cost (which is the out-the-door price on a lease)

2) The residual value of the vehicle

3) The money factor

4) The state sales tax

These four factors determine the total cost of the lease, and in turn the monthly payment. Let’s talk about the details.

Cap Cost

Instead of negotiating an out-the-door price (which is the price of the vehicle plus all taxes and fees), you negotiate the capitalized cost (also referred to as the “cap cost”) of the lease. The cap cost is the amount that the leasing company is paying for the vehicle. This will include:

  • The negotiated selling price
  • Doc fee
  • Miscellaneous fees
  • Additional products

Some of these charges are negotiable. For example, you don’t need nitrogen-inflated tires or security etching that you didn’t ask for billed on your lease agreement. For every $1,000 in additional cap cost, that will roughly translate to $27 a month in payment on a 36 month lease. Take a long, hard look at the itemized invoice before signing anything!

👉 Here’s a guide to which dealer fees are legit, and which you can negotiate.

Residual Value

Residuals are a percentage of the MSRP as set by the leasing company, and they are not negotiable. The residual value is the vehicle’s projected value at the end of the lease term. When you lease, you pay for the amount of depreciation that will occur over the course of the lease term. 

For example, if the residual on a 36 month lease is .75 (or 75%), your lease will include payment that covers the 25% expected loss in value over the course of 36 months.

Residual values are not negotiable and they are set by the leasing company based on allotted annual miles to be driven. Specifically, 7,500, 10,000, 12,000 or 15,000 are the standard mileage amounts that are normally offered. 

Dealers cannot modify or adjust the residual percentages other than for additional annual miles allowed to be driven. Check out an example of how residual values fit into leasing here. The residual value is disclosed on the lease as the amount that you can purchase the vehicle for at lease end.

The Money Factor

The money factor is set by the lender and can be marked up to the consumer, much like on a car loan. When a buyer finances a car, the dealer works with a number of lenders behind the scenes to get an attractive rate. However, that’s not the rate that the salesperson closing the deal will quote. Dealers markup loans, and pocket the difference. Fascinating and distressing, right? Here are all the ways that dealers make money when selling you a car.

With a car lease, dealers make money by marking up the money factor on a lease. The lender charges the dealer a money factor of say, .00125, and the dealer marks it up 50, 75 or even 100 basis points. The difference between the buy rate (what the lender charges the dealer) and the marked up rate (what you’re quoted) is additional backend profit on the lease for the dealer.

You should always try to negotiate the money factor to the buy rate or as close to the buy rate as you can get!

Sales Tax

best and worst states to lease a car

Taxes in most states are added to the total price of the lease. NY, NJ, MN, OH, and GA charge sales tax upfront on the total amount of the lease payments. VA, MD, and TX charge sales tax on the total selling price of the vehicle (the cap cost). In all other states, sales tax is simply factored into your monthly payment.

Sales tax is not negotiable, but it does vary from state to state.

Who Owns the Car In a Lease?

Simply put, the leasing company owns the vehicle that you are leasing from them. In most cases that will either be that brand’s captive lender or an outside bank. The vehicle will be registered in both the leasing company’s name and your name as the lessee. You will be responsible for registration renewals, maintenance and all insurance.  

It’s also possible that the leasing company financed the vehicle that they bought from the dealer. In that case, the financial institution would possess the title until the leasing company pays it off. 

Do Auto Leases Require a Down Payment?

No, but If you want to lower your monthly payment, consider making a down payment on your lease. In a car lease, the down payment is called a capitalized cost reduction, or cap cost reduction. These up front payments are optional, but they can help make leasing more affordable by lowering the monthly payments. The payment is lower because the cap cost reduction has lowered the cost of the vehicle to the lender. 

Any advertised lease payment typically requires a specified amount of cash down. For example, an advertised lease monthly payment may include $3000 cash down plus the first payment, acquisition fee, tax, title, registration and dealer fees.  

Remember as a rule of thumb, for every $1000 in cap cost reduction on a 36 month lease your monthly payment will be reduced about $27. 

Shoppers with bad credit may be required to make a security deposit, which is returned once the car is returned at the end of the lease. 

Why I Put Zero Down On My Leases

I put zero down on my leases and when I say zero, I mean not even a penny. Cash down on a lease just reduces the cost of the vehicle to the lease company and if the vehicle were ever declared a total loss, that money that you had put down is lost forever. A lease down payment is not covered by your auto insurance. They only cover the value of the vehicle, not the value of the cash that you put down. 

Whatever money you are thinking about putting down, deposit it into a separate investment account and draw from it monthly when you are making your lease payments. This way your money is still making money each month until you need to draw from it. 

Do I Pay Interest On a Lease?

Yes, your lease’s monthly payment includes interest, this is the money factor.

You can’t shop around for a better interest rate when it comes to a lease without shopping for a different car altogether. You won’t see an interest rate on your contract when leasing a car, but you can request this information from the dealer or leasing company. The total amount of interest paid on a car lease depends on the length of the lease term and even the type of vehicle. If you lease a model that is likely to depreciate faster, the leasing company is more likely to charge higher interest to ensure that loss in value (the residual) is accounted for.

One way to lower your interest rate (Money Factor) on a lease is by placing Multiple Security Deposits if the lender provides the option. Each MSDS equals one monthly payment and will reduce your MF by a percentage point determined by the lender. There is a limit on how many MSDS you can apply, but the savings can be significant in some cases.

Can I Pay For a Car Lease Up Front?

Yes, in most cases customers can pay for a lease up front. Paying for an entire lease at the time of signing is called a one-pay, or single-pay lease. Some lenders will discount interest costs if you pay for the whole lease up front. Make sure to find out if there is any benefit to you before you commit to paying for a car lease up front.

What Are the Pros and Cons of Leasing a Car?

how to lease in 2024

Pros

Risk Mitigation

  • When you lease, you transfer to the lender (bank) the risk of accelerated depreciation, diminished value due to damage/accident, and unexpected repair expense. 
  • Most leases include GAP insurance in the monthly payment. GAP insurance helps pay off your loan if the car is stolen or totaled in an accident.

Convenience

  • Having the most modern platform, technology, and safety features
  • You will always be under the bumper-to-bumper warranty, simplifying your ownership experience.

Flexibility

  • No long-term commitment. It’s easy to exit some leases and get into another type of vehicle if your lifestyle or needs change.
  • You have options: turn-in, sell, transfer, buyout, or extend the lease if you need more time finding a replacement. 

Financial

  • In some cases, the net total ownership cost is less than financing a purchase. Many shoppers find that leasing requires less cash outflow versus financing the same class of vehicle.
  • Your depreciation is fixed so you can pocket any positive equity if the forecasted Residual Value is underestimated by the bank – as those who leased in 2020 experienced due to the appreciation of used car prices today.

Cons

The car isn’t yours.

  • It’s a long-term rental: It is a long term rental and other than the use of the vehicle you have nothing to show for the money that you have spent.
  • Residuals can work against the consumer: In a normal market, Residuals are typically higher than the vehicle’s fair market value at lease end which means if you buy out your lease at the end you will more than likely be paying too much.
  • You’ll never pay it off unless you buy: It is a lease, so it is not yours to pay off. Your only obligation is to make the total payments as stipulated in your lease contract.

Few vehicles will lease well.

  • Lease program support (incentives, subsidized money factors, inflated residuals) will vary by manufacturer, model, and trim, limiting the selection of vehicles with an attractive lease payment. OEMs and their captive lending arms will choose specific models to support to offer low lease payments making them more competitive and gain market share. Newly released models or special trims, for example, will lack lease support making their lease costlier.

Fees and costs. 

  • If your leased vehicle has wear and tear beyond the limits set by the lending company (large scrapes, worn tires, broken windshield, etc.), you will be charged for repairs. Some lenders are known for billing excessive reconditioning fees. 
  • If you incorrectly estimate your mileage, you will overpay for depreciation. Underestimating your miles and overages (~0.30/mi.) can add up quickly.
  • If you decide to turn in your lease, you will have to pay a disposition fee ($300-$595) unless the lender offers to waive it.
  • While most lease contracts include a GAP waiver, they require elevated liability coverages, increasing your insurance premiums.

Still debating whether to lease or buy? We’ve got you covered. Check out our CarEdge guide to leasing versus buying in 2022.

Can I Lease an Electric Car?

EV leases 2024

Yes, an EV lease is a great way to give electric vehicles a try. Some lease companies pass along the EV tax credit to the consumer by lowering the capitalized cost by the EV credit amount.

In 2024, EV leases are surprisingly affordable. See the best EV lease offers here.

Leasing an electric car may be a great option to consider since battery technology improves every year. When your lease is up, you’ll be stepping into a whole new world of next-generation EVs.

How Can I Save Money Leasing a Car?

Negotiate what you can

The cap cost and money factor are negotiable. You should always try to negotiate the money factor as close to the buy rate as you can get!

Shop around for deals, be flexible

  • By shopping for specific models with more automaker or dealer lease support, you’re likely to get a better deal all around. Lease support varies by automaker, model, trim and vehicle inventory. You’ll probably want to stay away from new models and premium trims, which are costlier to lease.

What happens at the end of my car lease?

Deciding what to do at the end of a car lease depends mostly on how you feel about the car. Of course, your financial situation and inclinations also come into play. 

These are your options at the end of a car lease:

  • Return the car
  • Buy the car
  • Sell the car (if allowed)
  • Move into a new lease

Which option is a good fit for you? If you love the vehicle and can afford to finance or buy it outright, you can keep a vehicle with a good service history at a set price (from the residual on your lease contract).

If you no longer need a vehicle, leasing allows you to simply return the car and keys at the end of the lease term. Remember, leasing is just like a long-term rental.

Stuck on what to do when your lease ends? Check out our guide, “What to Do At the End of a Car Lease.”

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Buying vs. Leasing a Car in 2022 (Pros and Cons)

Buying vs. Leasing a Car in 2022 (Pros and Cons)

One of the most common questions we get asked at CarEdge is, “What’s better right now, buying vs. leasing a car?” In 2022, with car prices going crazy, this question has become even more important to answer. In this article we’ll answer a few of the most common questions when it comes to buying vs. leasing a car. You’ll learn things like:

  • Is it cheaper to buy or lease a car?
  • What are the advantages of leasing versus buying?
  • What car should I lease?

Let’s dive in.

Buying vs. leasing a car in 2022

Depending on who you talk to, leasing is either the best thing since sliced bread, or a foolish financial mistake. Many people misunderstand what leasing is; it’s simply a contract between you and a third party company that allows you to rent an asset for a set period of time with pre-negotiated terms and conditions. It’s nothing more and nothing lease less.

When you lease a vehicle there are four important factors that make up your monthly payment:

  1. The capitalized cost (which is the out-the-door price on a lease)
  2. The residual value of the vehicle
  3. The money factor
  4. The sales tax in your state

Let’s break each of these down.

Capitalized cost

When you lease a vehicle you do not purchase it, instead you are renting it. Instead of negotiating an out-the-door price (which is the price of the vehicle plus all taxes and fees), you negotiate the capitalized cost (also referred to as the “cap cost”) of the lease. The cap cost is the amount that is being financed with a lease. This will include:

  • The negotiated selling price
  • Doc fee
  • Misc. fees
  • Additional products

👉 Be sure to read this guide on which fees are legit and which you should fight back against.

The cap cost plays a major role in your monthly lease payment. As a rule of thumb, for every $1,000 in additional cap cost, that will roughly translate to $20 a month in payment on a 36 month lease. So if the salesperson won’t budge on their $2,000 paint and fabric protection package, that will end up costing you about $40 a month for three years. Ouch. With a lease you always negotiate the cap cost.

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Residual value

The residual value is the pre-set value that the leasing company says a vehicle will be worth at the end of the lease term. Residual values are represented as percentages of a vehicle’s MSRP, not the negotiated capitalized cost.

For example, in this car deal you can see that the dealer provided Maurice with three different residual values for three different lease term lengths.

lease with multiple residual values example

When you lease, you pay for the amount of depreciation that will occur over the course of the lease term. In Maurice’s case if he leased for 24 months the residual value is 68%, which means he will have paid for 32% of the vehicle’s depreciation from MSRP.

👉 Residual values are not negotiable and they are set by the leasing company. Dealer’s cannot modify residual values.

Money Factor

The money factor is the interest rate on a lease. Instead of paying an APR on a loan, you pay a money factor on the lease. Money factors are typically expressed in decimals which can be confusing. Don’t fret. Ask the salesperson for the money factor and then multiply it by 2400, that’s the interest rate you are paying on the lease.

Why do you pay interest on the lease? Because the leasing company is financing the purchase of the vehicle from the dealer. They then turn around and lease the vehicle they just bought to you. To make money they charge the dealer an interest rate (the money factor) to cover their cost of financing the purchase of the vehicle. That then gets passed on to you, the customer.

Money factors can and will be marked up. That means the leasing company may charge the dealer .00125 (3%) for the lease, and the dealer will turn around and tell you the money factor is actually .00175 (4.2%). That’s a sizable difference in rate, and represents a large profit center for dealers on a lease.

👉 You can and should negotiate the money factor on a lease.

Sales tax

Most states charge sales tax on each lease payment, some states do not. NY, NJ, MN, OH, GA for example charge sales tax upfront on the total amount of the lease payments. VA, MD, TX charge sales tax on the total selling price of the vehicle (the cap cost). In all other states, sales tax is simply factored into your monthly payment.

Sales tax is not negotiable.

Okay, so those are the mechanics of leasing, but that doesn’t answer the question, “What’s better right now, buying vs. leasing a car?” We’ll answer that below.

Is it cheaper to buy or lease a car?

As we discussed above, there are four factors that impact how “good” a lease deal is. So far in 2022 we’ve seen two phenomena that make leasing less attractive than in prior years:

  1. Residual values are low
  2. Money factors are high

Since you can’t negotiate the residual value, there are some vehicles that are truly “unleasable” right now. Imagine leasing a Hyundai Kona EV for 36 months and paying for 50% of the vehicle’s depreciation. No thank you!

In most cases right now it is cheaper to buy instead of lease. That being said, there are still some advantages to leasing.

What are the advantages of leasing versus buying?

Proponents of leasing love to tout the benefits of not owning a car. When you lease there are three primary benefits:

  1. You’ll have no negative equity at the end of the lease term
  2. You’ll always be in a new car
  3. If you want to buy your leased car at the end, you know the exact price you’ll pay, and you know how the car’s been driven and its maintenance and repair history

Since a lease is simply a rental, you’ll have no negative equity at the end of the term. Plus, with a lease you are committed for 3 years and then you can switch into something new. And, if you do chose to buy your lease car you know the vehicle history and shouldn’t have any concerns.

These are benefits of leasing no matter how good or bad the lease deal was.

What car should I lease?

So what cars actually lease well right now in 2022? If you’re seriously weighing buying vs. leasing a car, you should consider these vehicle’s as lease options:

TermYearMakeModelMSRPAverage Payment (12,000 miles)
362021BMWi3$48,970.00$425.80
362022KIANIRO EV$43,495.00$395.91
362022CHEVROLETBOLT EV$33,595.00$312.82
362022CHEVROLETBOLT EUV$36,245.00$341.01
362021CHEVROLETBOLT EV$38,567.00$367.63
362021HONDACIVIC TYPE R$41,940.00$409.78
362022TOYOTATACOMA$36,323.33$361.42
362022TOYOTATUNDRA 4WD$51,455.00$524.43
362022HYUNDAIKONA EV$39,435.00$401.39
362022MITSUBISHIOUTLANDER PHEV$40,356.67$412.84
362021POLESTARPOLESTAR 2$61,200.00$623.95
362022KIANIRO PLUG-IN HYBRID$34,331.67$350.88
362022JEEPWRANGLER UNLIMITED$47,838.86$502.42
362021TOYOTATACOMA$35,835.61$378.09
362022TOYOTATUNDRA 2WD$48,478.57$527.23

I need help with my car lease

Do you still have questions on buying vs. leasing a car? Get help from CarEdge’s team of car buying coaches. Click here to join CarEdge and get connected with a car lease expert who can help you navigate your deal. Here are some additional resources on car leases as well:

New Vehicle Inventory Levels Hit All Time Low (Ford, Honda, Toyota)

New Vehicle Inventory Levels Hit All Time Low (Ford, Honda, Toyota)

New vehicle inventory levels have plummeted. The ongoing semiconductor shortage has caused automakers to cut production. Drive around town and you’ll see your local car dealership likely doesn’t have much inventory on their lot, and if they do, it’s likely used vehicles, not new.

More and more dealerships are turning towards “factory orders“. Generally speaking, this is a good thing, as it allows the customer to get exactly what they want. The issue is, as far as we can tell from our community of thousands of savvy shoppers, those people who placed orders are getting the runaround.

Learn more about the chip shortage. Read: The How We Ran out of Cars in the US

“Your car will be built next week and shipped to us soon,” is a common phrase we’re hearing, and then sadly weeks go by without an update. Automakers are simply struggling to do what they’re supposed to do best; make cars.

To put into perspective how dire the current new vehicle inventory situation is, we’re going to compare the current market days supply and inventory levels of a few of the major automakers to their prior levels in 2019. Let’s dive in.

Ford Inventory Levels

Ford has made headlines for many reasons in 2021. Their current inventory levels are one of those reasons. In September of 2019, Ford had 621,000 new vehicles in inventory across the United States. At current sales rates, that represented an 82 day supply of inventory on their dealer lots. Today, as of September 2021, Ford has 210,800 units of inventory in the market.

See your local inventory levels

Toyota Inventory Levels

Toyota was initially hailed as one of the automakers who would be able to mitigate the effects of the chip shortage and retain their production capacity. That was until Toyota announced a 40% decrease in production in October as a result of supply-chain issues.

In 2019 Toyota had 444,000 units of inventory in the market, at a 50 days supply. Today, Toyota has 135,200 units of inventory in the market, at an 18 days supply. Staggering.

See your local inventory levels

Honda Inventory Levels

Honda’s inventory levels in September of 2019 were healthy, with 351,700 units of inventory in the US market. Today they have less than 100,000 units of inventory for sale in the United States.

See your local inventory levels

Hyundai & Kia Inventory Levels

Hyundai and Kia have also struggled during the chip shortage. In 2019 they had 210,400 new vehicles in dealer inventory. Today that number stands at 79,400, with a days supply of inventory of 17.

See your local inventory levels

What does low new vehicle inventory mean for me?

If you’re looking to buy a car in 2021 the price you are going to pay will be higher than in prior years. We recommend you do not buy a vehicle right now unless you absolutely need to. If you do need a new set of wheels we encourage you to consider leasing instead of financing. More on that here.

Because of the shortage of new vehicles, used cars have appreciated in value as well. If you are going to buy a used vehicle, be sure to get it pre-purchase inspected.

To learn how CarEdge members are securing fair deals in these tough market conditions, read some success stories here.