How I LeaseCar and DriverEvery couple of years, my family leases a new car. Does my accountant like this? I don't know, since I don't have one. The little accountant in my head, however, is not a fan of leasing. But that guy is often at odds with the little parent in my head that believes in the benefits of carting around my kid in a car with modern safety technology and convenience features.You might ask, why not take out a loan and buy a new car? That way you can at least build some equity without sacrificing safety. To that I say, "Have you seen the price of new cars these days!?!?"If it's important to you to be in new cars every few years, leasing is going to be your best option. It's true that taking out a loan on a car can be a savvier financial decision than leasing, but it's not always the case. Depending on the interest rate, the length of the loan you take, and how long you intend on owning the car, financing can actually be a less shrewd option.AdvertisementAdvertisementThis is due to the way loans amortize. Initially, the majority of your payment goes toward paying the loan's interest. As time progresses, less of your monthly payment goes toward interest, and more covers the cost of the car itself (the principal).Since cars are—with few exceptions—depreciating assets, they typically lose more value in those initial months and years than the amount of the principal you've paid off, which means you're likely to have negative equity in the vehicle or owe more than the car is worth, a situation also known as being "upside down." Try selling the car during this period of time, and there's a good chance the sale price will not cover the money you still owe on the vehicle.For many, then, financing is a sensible decision if you can snag a low-finance loan over a short period of time or an interest-free loan. Still, odds are your monthly payments on the loan will still top those of a good lease deal.Brett Affrunti - Car and DriverCrunch the NumbersLet's use the 2024 Kia Niro EV that my wife and I lease as an example. With a price of $42,670, paying off our Niro over the course of a 72-month loan, even with 0 percent financing, would come in at around $592 per month. Trim that time to the 24-month length of our lease, and that figure swells to nearly $1800 per month. And that's not including taxes and the like.AdvertisementAdvertisementGoing the leasing route, meanwhile, brought our effective monthly payments (the total of the down payment, monthly payments over the length of the lease, and taxes and fees divided by the lease length) to well under $400 per month. I know, I know. I could take out a loan on a lower-end vehicle or a decent used car and end up with a sub-$400 payment.Illustration by Darcy Muenchrath - Car and DriverPick Your PreferencesBut here's the thing: We live in Michigan and have a toddler, so heated seats swathed in leather or vinyl are luxuries we prioritize. We want instant warmth in the cold and easy cleanup of inevitable spills. Nabbing these items and a sub-$450 per month effective payment isn't easy, even when leasing. But I've been able to do it—and without wasting time haggling.True, a good negotiator could probably finesse a better deal than I've managed. But making that happen takes a lot of time, and frankly, I'd rather not waste it going back and forth with a dealer's sales manager for hours on end.Ryan Olbrysh - Car and DriverSearch for Lease DealsInstead, I block out 30 minutes or so to search the web for manufacturers' monthly lease offers. In my case, I look for a lease on a car equipped with the correct seating-related luxuries and an effective monthly payment less taxes and fees that totals no more than about $400. Whatever your max cost is, just remember you'll want to leave some room to account for the unlisted taxes and fees that will add to the monthly total.AdvertisementAdvertisementIt takes some reading through fine print to figure out the specific vehicle trim the deal applies to, not to mention some basic arithmetic. Annual mileage limits can vary, and you may want to prioritize offers that provide enough leeway so that you won't exceed the total. In reasonably short order, you ought to have a handful of options that meet your marks. If not a single option fits your predetermined budget, you may need to reassess. Maybe you need to bump up your max effective payment figure just a bit. Or maybe you sacrifice a "must-have" feature from your wish list.Alexander Wells - Car and DriverPrioritize Your FinalistsWhere you go from here depends on your priorities. Maybe you want the car that sees the least money leave your account over the course of the lease. Personally, I favor the option that requires the lowest down payment. This is because whatever money you put down is gone as soon as it leaves your hands. For instance, let's say you have the bad luck of getting into an accident that totals your newly leased car as soon as you exit the dealership. The good news is that any future payments ought to be covered by the insurance payout. The bad news is that the initial money you just forked over is non-refundable.So, that's my strategy to getting a good deal on a car lease without losing my sanity engaging in negotiations. The latter comes courtesy of the manufacturer's backing of the deal, which just about any dealer with an applicable vehicle in stock will honor.If this seems like the sort of leasing methodology that will work for you, then scroll down to see my process laid out in a simpler, point-by-point overview.Lease Like a C/D Editor in Six Easy StepsPin down a maximum effective monthly payment you're willing to pay—both with and without taxes and fees.Determine your "must-have" features you really want in your next vehicle.Search manufacturer sites for current offers. Read the fine print to make sure mileage limits and the equipment level of the specific vehicle this deal applies to meet your needs. Keep track of the deals you find that make your grade.Crunch the numbers on the deals you've tracked. If none of the lease deals you've found come in under your budget cap, then you may need to reassess things—can you afford a slightly higher payment? Do you really need that feature?Of the lease offers that make the cut, prioritize the ones whose terms make the most sense for your needs—be it the ones that ultimately cost the least, the ones that offer the highest mileage caps, the ones that require the lowest signing payment, or something else entirely.Find dealers with qualifying vehicles in their inventory and snap your car up. Prepare for upsells—let them know you're not interested and want to stick to the parameters of the manufacturer's deal, nothing more, nothing less.AdvertisementAdvertisement➡️ Skip the lot. Let Car and Driver help you find your next car.Shop New Cars | Shop Used CarsYou Might Also LikeGift Guide: Best Ride-On Electric Cars for KidsFuture Cars Worth Waiting For: 2025–2029
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