General
-
021 Auto Leasing
Two lease quotes are only comparable when the same fields are visible on both. This checklist is built to be printed and laid next to your offers.
Fast answer: how to use this checklist
Print this checklist or open it in a second browser tab and lay it next to every lease quote you receive. Mark each field present or missing on each quote. Quotes that have all the fields filled in are comparable to one another. Quotes that are missing fields are marketing payments dressed up as quotes, and the right move is to request the missing fields in writing before the comparison continues. Reg M, the federal consumer-lease regulation, requires the lessor to provide most of these fields before you become contractually obligated, so asking for them at the quote stage is reasonable, not aggressive. Use the checklist on every brand and every model, gas or electric, premium or mainstream; the structural fields are the same, even when the underlying lender, captive, and program windows differ.
Required fields every comparable lease quote should show
Vehicle: year, model, exact trim, exact option package, color combination, and a vehicle identifier where available. Term: number of months. Mileage: annual mileage tier (10,000, 12,000, 15,000, etc.). Capitalized cost: the agreed cost of the vehicle after any cap-cost reduction. Cap-cost reduction: the dollar amount applied (down payment, trade equity, manufacturer credit). Residual value: the dollar amount and the residual percent of the agreed MSRP. Money factor: in fractional form (multiply by 2400 for the equivalent annual percentage rate). Monthly payment: pre-tax and after-tax. Total drive-off: every dollar required at signing. Acquisition fee, disposition fee, dealer documentation fee, government fees: each disclosed separately. Tax basis: how California sales/use tax is being applied, on monthly payment vs full vehicle price. Reg M structures the disclosure of capitalized cost, residual value, rent charge, total of payments, and applicable fees, and the safe shopper move is to ask for all of them up front.
What makes two quotes non-comparable
Two quotes are not comparable when any of the following differ. Different exact vehicle (a 350 quote next to a 450 quote, or a base trim next to a Premium-package trim). Different term length. Different annual mileage tier. Different due-at-signing structure (a sign-and-drive payment looks lower than a first-month-plus-fees payment even when the underlying lease is identical). Different lender or program window. Different incentive treatment, especially on EV leases where federal pass-throughs and California programs interact. The right move when two quotes diverge on any of these is to re-request both quotes with the same inputs, not to argue about which shape the comparison should take.
California fee and registration context
California adds a vehicle license fee that scales with the vehicle's value and a registration fee structure the DMV publishes online. The DMV also publishes a fee calculator that previews these for the specific vehicle. Sales/use tax on a lease is generally collected on each monthly payment rather than on the full vehicle price; the California Department of Tax and Fee Administration is the canonical reference. Smog inspection rules exempt new vehicles during the first window of ownership, which removes a friction step at delivery. None of these fees should be memorized. They should be previewed using the DMV fee calculator before signing and verified line by line on the contract.
Red flags to ask about before signing
Watch for any of the following. A quote that refuses to disclose money factor or residual percent. A quote that bundles 'fees' into a single dollar figure. A quote that quotes after-tax monthly only and hides the pre-tax monthly. A quote that uses a lower mileage tier than your real annual mileage to show a smaller payment. A quote that capitalizes registration, acquisition, or other fees into the monthly without flagging it. A quote that asserts a federal or California EV credit without naming the program, the eligibility basis, or the date the eligibility was last checked. A 'special' that depends on a manufacturer or affinity program you have not confirmed. A trade-in figure that is bundled into the cap-cost reduction without a separate trade-in valuation. A 'sign and drive' framing that hides where the cap-cost reduction came from. A residual percent that does not match the published lender residual table for the specific term and mileage tier. A money factor that does not align with the credit-tier band you actually qualify in. None of these are necessarily fraud; many are normal sales practice. They are reasons to slow down and request the missing disclosure before continuing. If a lessor declines to provide that disclosure, that lessor is not yet quoting a contract.
Send-this-when-you-request-a-quote template
Use this template when you write to a dealer or broker. 'Please quote a [year] [make] [model] in [trim] with [option package] in [exterior color]/[interior color] for a [term] month lease at [annual mileage] miles per year. Please disclose capitalized cost, cap-cost reductions, residual value and residual percent, money factor, monthly payment pre- and post-tax, total drive-off broken into first payment, acquisition fee, dealer documentation fee, government fees, and any other charges. If a manufacturer or lender program is being applied, please name the program, the eligibility basis, and the program's expiration. If an EV credit is being passed through, please name the program (federal Section 30D, federal Section 45W, or California program), the eligibility basis, and the date last verified. Please respond in writing by [deadline].' That paragraph turns most lease conversations from a back-and-forth negotiation into a structured request, and lessors who can answer it cleanly are usually the ones worth working with.
Where to take the conversation next
If you are mid-decision and have not chosen a model yet, the California luxury lease shopper playbook frames the lane decision before the quote stage. If you are between Mercedes-Benz models, the Mercedes-Benz lease shopping guide is the next stop. If you have one or more written quotes already and want a broker to apply this checklist for you, the 021 quote-review service does that work directly.
Frequently Asked Questions
What is a money factor on a lease?
A money factor is the lender's finance charge expressed as a small decimal. Multiply by 2400 to convert to an approximate annual percentage rate. The money factor is one of the disclosure fields Reg M structures, and any quote that hides it is not comparable to one that reveals it.
What is residual value on a lease?
Residual value is the dollar amount the lender estimates the vehicle will be worth at the end of the lease, expressed as a dollar figure and a percent of the agreed MSRP. Higher residual percent generally means lower depreciation per month, all else equal.
Should I lower the monthly payment by stretching the term?
Sometimes, but check the warranty alignment and the residual curve first. A longer term that runs past bumper-to-bumper warranty exposes you to repair risk; a longer term that pairs with the wrong mileage tier compounds overage exposure.
How is California sales tax handled on a lease?
California sales/use tax is generally collected on each lease payment rather than on the full vehicle price up front. The California Department of Tax and Fee Administration publishes the canonical reference, and your dealer or broker should confirm how the tax basis was applied to your specific quote.
Related 021 resources: lease lineup, lease pricing explainer, California lease fees guide, California luxury lease shopper playbook, Mercedes-Benz lease shopping guide, request a quote review, beat my deal.
