The Simple Definition
A car lease is a long-term rental. You pay to use the vehicle for a set term (usually 24, 36, or 48 months), then return it at the end. You never own the vehicle unless you exercise a buyout option at lease end.
How Lease Payments Are Calculated
Three numbers determine your monthly lease payment: (1) The cap cost — the agreed price of the vehicle. (2) The residual value — what the car will be worth at lease end, expressed as a percentage. (3) The money factor — essentially the lease interest rate. A higher residual means lower payments. A lower money factor means lower payments.
What's Included in a Lease
Most leases include a mileage allowance (typically 10,000–15,000 miles per year), wear-and-tear provisions, and sometimes a warranty that covers the vehicle for the lease term. Going over mileage costs extra — usually 15–25 cents per mile in Florida.
Leasing vs. Buying in Florida
Leasing usually means lower monthly payments but no equity built. Buying means higher payments but you own the vehicle at the end. Leasing makes sense for buyers who want a new vehicle every few years, drive predictable mileage, and prefer lower monthly payments. Buying makes more sense for buyers who put on high miles or want to own long-term.
Common Lease Traps in Florida
Watch for: artificially high cap cost (negotiate the vehicle price first), low residual on certain models (check residual percentages by make/model), excessive documentation fees, dealer-added packages that inflate cap cost, and early termination fees if you need to exit the lease early.
How a Broker Helps with Leasing
A broker-style service organizes your lease request around what you actually need: monthly budget, miles per year, down payment comfort, vehicle type, and required features. This avoids the situation where a salesperson starts with a payment before the vehicle, mileage, and terms are agreed.