Understanding "National Lease Offers"

Understanding "National Lease Offers"

Most of our clients at Carlease.com want a lease with:

  1. $0 down
  2. 12,000+ miles/year

If you are currently browsing a dealers' site for deals on leases, you will surely find one - or at least what appears to be a great deal. We call these quotes national lease offers.

These are what "National Lease Offers" look like:

What is a "National Lease Offer"? 

"National Lease Offer" is an achievable payment for a common vehicle available at your local dealer if you follow all stipulations in ad. The reason these are so difficult to match is explained below:

This graphic will help explain what each aspect of the price means.

How did they get down to this low of a payment?

Their goal is to standardize a payment for all regions of the country. Their intent isn’t to be misleading but to have a one size fits all approach to advertising a lease special. So what are some of the factors they are using?

Mileage 10,500: Typical mileage standards are 10,000/12,000/15,000 depending on the leasing company. In this case, the total mileage allowance would be 34,125 miles for the entire lease period.

Length of term: 39 months in this case. That is how long the contract is for.

Due at signing: In this case, $3,169. This is referred to as a cap cost reduction. You are reducing the overall amount you owe on the lease contract thereby lowering your monthly payment. Much like a down payment on a loan.

No taxes/fees included: Because these are nationally advertised, they exclude sales tax and registration. These factors vary wildly across the country. For instance, Oregon has no sales tax, but Chicago reaches 9.5%. And registration fees vary as well. Some states have a set fee to register a vehicle, others charge more depending on the value of the vehicle.

"In my career as a sales consultant and finance manager in the automotive business, I have delivered on a National Lease Offer (as quoted on the manufacturer's site) ONCE. It was a VW Rabbit back in 2009..."

What’s missing or assumed in the quote?

  • Most people don’t know the vehicle sales tax figure off the top of their heads. It is different from the sales tax you pay on everyday products in many states.
  • Between sales tax and registration, this can add thousands to your lease.

What would change about this price for Chicago residents specifically?

  • Chicago levies a 9% monthly usage tax on top of the final payment.
  • True payment on this car in Chicago ~ $355
  • Sales tax- $1452.63
  • Chicago monthly 9%- adds $29.37
  • Equity down of- $3169

No Dealer Required

What if we told you there was another way?

A way to get the best deal possible, avoid the trickery of "National Lease Offers", and find the perfect vehicle for you - all from the comfort of your own home? The leasing experts at Carlease.com are here to help.

Carlease.com is a free, unbiased leasing service whos significant purchasing power means lower prices and the ability to match advertised lease specials. Our quotes are all “no-money-down” quotes, and we include taxes and fees so you know your real monthly payment. Browse hundreds of cars in the comfort of your own home. Reach out today - we'll find the ideal vehicle for you and have you driving in no time.

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