Most standout lease deals have the manufacturer's money behind them. Incentives are how a brand moves cars it needs to sell, and on a lease they can take hundreds of dollars a year off your payment.

The catch is that many incentives depend on who you are, what you drive now, or where you live. Knowing which ones you qualify for is half the job.

This is part of how lease payments are calculated.

The main types

Lease cash. Money from the manufacturer that reduces the capitalized cost. Available to anyone leasing that model through the brand's finance arm, and often the biggest incentive on the car.

A subsidised money factor. The brand's finance arm offers a lower rate than normal. See money factor on a car lease.

A subsidised residual. The brand sets the residual value higher than the car would naturally be worth, so you pay for less depreciation. You rarely see this one advertised, but it is a large part of why some models lease so cheaply.

Loyalty cash. For people who currently own or lease a car from the same brand. It rewards staying.

Conquest cash. For people who currently own or lease a car from a competing brand. It rewards switching.

Group programs. Offers for recent college graduates, active military and veterans, first responders, and sometimes members of certain organisations.

What "loyalty required" means

When a lease ad says loyalty required, the advertised payment assumes you qualify for the brand's loyalty cash. If you do not currently own or lease that brand, the payment will be higher, sometimes by a meaningful amount.

The same goes for conquest required, and for ads that assume a group program. Always check which incentives an advertised payment includes before comparing it with another quote.

Proving you qualify

Loyalty and conquest cash usually require proof, and the rules are specific:

  • The current vehicle is often required to be registered in your name, or in the name of someone in your household, depending on the brand.
  • It may need to be registered for a minimum period, such as 30 or 90 days.
  • Some programs require you to trade the car in, others only require that you own or lease it.
  • Business registered vehicles may or may not count.

Ask for the exact rules before relying on the incentive.

Stacking and timing

Stacking. Some incentives combine and some do not. Lease cash and loyalty often stack. A subsidised rate and a cash rebate sometimes do not, and you have to choose. Where you must choose, work out the total cost both ways.

Timing. Incentives change, commonly at the start of each month, and they vary by region. The best time to lease often lines up with a model's strongest incentive period, such as the end of a model year.

Tax. In some states, rebates applied to a lease are taxable. See sales tax on a car lease.

Why dealers do not always mention them

Not out of malice, usually. Incentives are numerous and change monthly, and loyalty or conquest cash only applies if you ask. But an incentive you qualify for and do not claim is simply money left behind, so ask directly: "Which incentives am I eligible for on this car, and are they all applied?"

The short version

Lease cash, subsidised rates and residuals, and loyalty, conquest and group programs can all lower your payment. Many depend on your current car or circumstances, and an ad saying "loyalty required" assumes you qualify.

Checking every incentive you are eligible for is part of how we negotiate a lease. If you want us to check yours, tell us the car and what you drive now.