Car Lease Checklist: What to Check Before You Sign

A lease contract is not complicated once you know where to look, but it rewards reading carefully. Most of the expensive surprises people find at lease end were written in the contract on day one.

Work through this list before you sign. If a number does not match what you were quoted, stop and ask why.

1. The core numbers

These five decide your payment. Every one should be written in the contract and match your quote.

• Capitalized cost (the selling price). Matches the negotiated price, before any down payment. See capitalized cost explained.
• Money factor. Matches the quote. Multiply by 2,400 to see it as an APR and compare with what you expected. See money factor on a car lease.
• Residual value, in dollars and as a percentage of MSRP.
• Term, in months.
• Annual mileage allowance. Make sure it is the number you actually drive, not the lowest one on offer. See car lease mileage limits.

2. What you pay at signing

• A full breakdown of the due at signing figure. First month's payment, taxes, registration, the acquisition fee, the documentation fee, and any down payment should each be listed. See what is due at signing.
• Any down payment (cap cost reduction) is shown as a separate line, so you know exactly how much of the upfront money is prepaying the lease.
• Incentives and rebates are applied and named.

3. Fees

• Acquisition fee. Set by the lender. Ask whether the dealer has marked it up.
• Documentation fee. Set by the dealer and capped by law in some states.
• Disposition fee, charged when you return the car. Know the amount now.
• No unrequested add ons. Paint protection, fabric coating, etching, nitrogen tyres and similar products should appear only if you asked for them. Our guide to lease fees covers which are normal.

4. The car itself

• The VIN on the contract matches the car you are taking.
• Trim and options match what you agreed. A lower trim at the same price is not the same deal.
• Mileage on the odometer is what you would expect for a new car, usually delivery miles only.

5. Protection

• Gap coverage. Is it included in the lease? If not, arrange it separately. See gap insurance on a lease.
• Insurance requirements. Liability limits and the maximum deductible the lease allows. Get a quote before you sign. See insurance for a leased car.
• Maintenance. Whether any scheduled maintenance is included, and for how long.

6. The end of the lease

These are the terms people skip, and the ones that cost the most later.

• Excess mileage charge, per mile. Commonly 15 to 30 cents.
• Wear and tear standards. Ask for the lender's guide. See excess wear and tear.
• Purchase option price at the end of the lease, and any purchase fee.
• Early termination terms. What it costs to end early, in case your plans change. See getting out of a lease early.
• Transfer policy. Whether the lender allows a lease transfer, and the fee.

7. Before you drive away

• A signed copy of everything, including any "we owe" note for promised accessories or repairs.
• A walk around the car in good light, with any existing marks noted in writing.
• Two keys, and the manuals.

The short version

Check the five core numbers, the breakdown of what you pay up front, the fees, and the end of lease terms. If anything differs from your quote, it is not a formality. Ask before you sign, not after.

If you want a second pair of eyes on a lease offer, send it to us and we will go through it line by line.