Leasing

How to Negotiate a Car Lease

Finding the perfect car to lease is one thing, but negotiating the best deal possible is another. Learn how to negotiate a car lease to fit your budget.

Read time

8 minutes

Date

03.01.2024

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Leasing a car represents something every car owner should experience, regardless of the financial ramifications. You can take advantage of several benefits by leasing a vehicle, but the best is often the deal you make if you know what you’re doing. Finding a good lease deal worth your time is one thing, but negotiating your own is quite another. If you’re unsure how to negotiate a car lease, you’re not alone. 


FINN car subscriptions offer a viable lease alternative worth looking into. Your monthly subscription fee accompanies flexible terms and mileage options to mesh with your lifestyle. FINN also incorporates registration, depreciation, insurance, and maintenance into your monthly payment so you can combine most of your car-related expenses. Choose from a vast fleet of vehicles for your next car subscription with FINN. 

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How to negotiate a car lease in 7 steps

Educating yourself on car lease terms before you start looking into lease deals can help you get a leg up on the average consumer. Terms like capitalized cost, annual mileage, market value, and capitalized cost reduction can help you better navigate a lease offer. Here are the seven steps to negotiate a car lease once you’re ready to get in the driver’s seat. 

1. Pick out your make and model 

Ask yourself what make and model you’d like to lease and why, and if you want to lease a brand-new car or a used car. Consider your daily commute, what features you’re looking for, and what type of leased vehicle best suits your needs. If you’re not loyal to a make or model, write down your needs and wants. Verify car insurance coverage costs, especially if you want to lease a new vehicle. 

2. Determine your budget 

Calculate how much you can spend on a lease overall and what monthly payments fit your budget. Remember that salespeople tend to put pressure on your monthly payment, but a dip here can suddenly resurface as an additional fee later on. Figuring out your monthly payment as if you were buying the car is often the best way to think about coming up with your desired monthly lease payment and protect your personal finances. 

3. Verify your credit score

Your lease money factor depends heavily upon your credit score, so request a free credit report to check your score. Verify any details on your credit report are correct. If you have poor credit, it’s often best to improve your score before you search for a lease deal. You’ll pay less for your lease with a higher credit score. 

4. Shop around 

Now that you’ve got the critical groundwork laid to find the best lease for your situation, it’s time to compare offers from several dealerships in the area. If you’re not loyal to a brand, compare offers from several automotive manufacturers to see which offers you the best bang for your buck. Keep a notebook with all the offers you encounter to easily reference dealerships or leasing companies when you’re ready to move on to the next step. It’s a good idea to consider the lease deal similar to a car loan in reducing the value of the vehicle to pay less for your lease. 

5. Test drive various models 

If you’re someone who already knows what make and model you want to drive, you don’t necessarily have to complete this step. However, it’s a good idea to go for a spin in a car you plan on leasing to ensure everything is on the up-and-up. If you’re unsure which model to lease, test-driving a few can help you make a more informed decision. 

6. Negotiate

Lease negotiations look as different as the numerous lease deals available. Many future lessees start with the purchase price of the vehicle, but they also ask lessors about incentives, discounts, specials, and dealer rebates to reduce the price of the car. If the worst that comes of asking after these cost reductions is a “no,” you’ve neither gained nor lost anything. 


Part of negotiating is also understanding what you can haggle. In a lease deal, negotiables include the capitalized cost, mileage limit, lease buyout price, disposition fee, down payment, and any trade-in value as applicable. You want to minimize the difference between the capitalized cost and residual value to lower your monthly payment. Choosing the appropriate number of miles can also help you avoid paying excess mileage charges upon the end of the lease term. 

7. Seal the deal 

Once you’ve found the auto lease deal you want, all that’s left is to make it official. Remember, don’t sign the lease agreement until you’ve checked the dealership’s calculations against your own. Clarify any confusion points in the lease agreement to iron out the last few details. Then, it’s time to drive away in your newly negotiated leased car. 

What can’t be negotiated in a car lease

Try as you might, you can’t negotiate everything in a car lease. The following aspects represent areas where your negotiations will be futile: 

  • Residual value
  • Acquisition fee
  • Disposition fee
  • Promotional offers
  • Taxes
  • Registration and titling


Depending on the leasing company, lender, or dealership you work with, you may be able to negotiate a lower money factor. However, this figure is less negotiable than others based on its dependence on your credit score. If you have a lower credit score, you’ll likely pay a higher money factor regardless. The opposite is true if you have a high credit score. 


Knowing what you can and cannot negotiate is critical in finding the best car leasing deals. Read on to learn more about how to negotiate a better deal and drive away having succeeded. 

More tips for negotiating a car lease

Everyone negotiates differently, each with their own rates of success. Below are additional tips you can use to negotiate a better lease deal: 

  • Alert the salesperson upfront that you’re ready to talk business and agree on a deal
  • Learn as much about leasing as you can before you step foot in a dealership
  • Avoid any add-ons a leasing company or dealership might offer
  • Ask about any additional fees
  • Learn how to negotiate a fair trade-in value of the car you want to part with, if applicable
  • Avoid discussing monthly payments and focus on the overall lease cost instead
  • Never give the dealer a deposit to hold a car 
  • Like car buying, negotiate during a slow period when you feel at your best
  • Let the dealership or leasing company know you’d like to purchase the car at the end of your lease, if a purchase option exists
  • Don’t drive the car home or agree to any terms before you sign the paperwork 
  • Purchase an additional mileage allowance if you’re afraid you’ll exceed your limit


Key to any negotiating tactic is remaining calm, collected, and comfortable. If you get the feeling something just doesn’t feel right, don’t hesitate to remove yourself from the situation. No lease deal is worth compromising your position.

How to negotiate a car lease FAQs

Don't sweat if you’re not one of many self-proclaimed lease hackers. The questions below can help you find a better lease, even if you’re not a master negotiator. 

No, you can’t typically renegotiate or refinance a car lease once you’ve signed the lease contract. If you want to back out, you must terminate the lease agreement early, which can result in hefty early termination fees. You can also attempt to swap your lease, but terms and conditions vary. 

When negotiating a car lease, the rule of thumb is to keep your monthly lease payment within one percent of the MSRP. This calculation excludes taxes but requires dividing the monthly payment by the MSRP on a 36-month lease with 12,000 allotted miles. In practice, this calculation looks like paying no more than $400 for a car with a $40,000 MSRP. 

Negotiating the money factor on a car lease depends on your credit score, so having a higher credit score can work in your favor. In many ways, money factors are no different than interest rates on an auto loan. However, you may have mixed results in negotiating the money factor, as a lending institution often determines them. That said, you can ask the dealership if they work with other companies that offer better terms. 

Lower monthly payments on a car lease require researching available specials and dealer incentives, checking your credit score, or negotiating a lower money factor. If you can find someone to cosign a car lease, you can reduce your lease money factor. Shopping around and comparing offers will also help you pay less on your next lease. 

Final thoughts

Negotiating the best car lease deals can boost your self-confidence as you pay less for a car you get to drive, too. Like any other type of negotiation, car lease deals require research and knowledge of what you can push dealerships or leasing companies on and what’s off the table. Sometimes, putting those concepts and skills into action can take some practice. If there aren’t any good lease deals, no amount of negotiating will get you into a stellar lease. 


If you hate negotiating or don’t want to spend time researching and crunching numbers, a FINN car subscription offers a convenient and flexible option. Your FINN car subscription features a monthly payment that includes insurance, registration, depreciation, and maintenance. FINN also offers six-month to two-year terms and plenty of mileage options to suit your lifestyle. 

Final thoughts

Negotiating the best car lease deals can boost your self-confidence as you pay less for a car you get to drive, too. Like any other type of negotiation, car lease deals require research and knowledge of what you can push dealerships or leasing companies on and what’s off the table. Sometimes, putting those concepts and skills into action can take some practice. If there aren’t any good lease deals, no amount of negotiating will get you into a stellar lease. 


If you hate negotiating or don’t want to spend time researching and crunching numbers, a FINN car subscription offers a convenient and flexible option. Your FINN car subscription features a monthly payment that includes insurance, registration, depreciation, and maintenance. FINN also offers six-month to two-year terms and plenty of mileage options to suit your lifestyle. 

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