Lease
A vehicle lease allows someone to use a car for a set period under mileage, wear, and payment terms.
What this page covers
This explainer is designed to show what the option is, how the basic mechanics work, and which details people commonly compare before looking at providers, products, or tools.
- Plain-English steps for how lease works.
- A simple example that shows the moving parts without selecting a product.
- Comparison factors, calculators, and source links for deeper research.
How it works
The lease contract sets the term, monthly payment, mileage allowance, and end-of-lease rules.
The customer pays for the vehicle’s expected depreciation and lease charges during the term.
Mileage overages, excess wear, and disposition fees may apply.
At the end, the customer may return the vehicle or use any purchase option in the lease contract.
Simple example
A driver compares a 36-month lease with a 60-month loan.
Lease costs depend on negotiated price, residual value, money factor, taxes, fees, and contract rules.