Leasing, decoded.
Money factors, residuals, lease-end plays, and whether leasing beats buying for the car you actually want.
Same car, two paths. See the real total cost of each over your ownership window.
Start here
The pieces that answer this decision's biggest questions.
Lease End 90-Day Playbook: What to Do When Your Lease Is Almost Up
A week-by-week action plan for the final 90 days of your lease, including how to check for equity, avoid dealer traps, and decide whether to buy, return, or flip.
Is Car Insurance More Expensive on a Leased Car?
Yes, usually 10 to 20 percent more. Here is why a leased car costs more to insure than the same car bought, how much extra to budget, and how the gap can flip a lease vs buy decision.
Money factor, explained
Money factor is the lease equivalent of an interest rate, expressed as a tiny decimal that looks confusing but isn't.
Residual value, explained
Residual value is what the leasing company predicts your car will be worth when your lease ends.
Lease basics
Capitalized cost (cap cost), explained
Cap cost is the lease equivalent of purchase price—the starting number your monthly payments are calculated from.
Mileage allowance, explained
Your lease mileage allowance caps how many miles you can drive before paying steep per-mile penalties at turn-in.
Dealer lease vs broker lease: which saves you more money in 2026?
Lease brokers beat dealer showrooms by $1,200 to $2,400 over three years on popular models through price transparency and volume deals, despite the extra coordination hassle.
Toyota and Honda Just Made Leasing Way More Expensive
Both Japanese brands hiked their lease money factors this week, pushing effective rates above 7% on most models.
Acquisition fee, explained
A non-negotiable charge by the leasing company to set up and process your lease, typically between $395 and $995.
Cap cost reduction, explained
The upfront cash you put down on a lease to lower your monthly payment and the total amount you'll finance.
Disposition fee
A charge your leasing company collects when you return the vehicle at lease end, typically $300 to $500.
Lease vs Buy: 2026 Honda CR-V
Buy the 2026 CR-V if you plan to keep it past 60 months—your per-mile cost drops to 41 cents by year eight versus perpetual lease payments.