What is Leasing?

Leasing is nothing more than a method of paying for the use of a car, truck, SUV, or van over a specified period of time. Sounds like renting, but don't get the two confused because they are very different. Where you can rent a car for as little as a day, or even a few hours, leasing typically starts at 24 months.

Price is important in leasing

When you lease, you negotiate a purchase price with the dealer just as you would if you were buying. This key point is not well known and dealers have even told customers that, because it's a lease, price is always full sticker price. This is simply not true. Generally, the only time you would not need to negotiate price is when the dealer is offering a special advertised deal in which the price and other factors of the lease are already set to attract your business.
Once you and the dealer agree on a price, and you've signed the lease contract, the dealer actually sells the car to the leasing company at that price. The leasing company then leases the car to you, based on that price. For this reason, price becomes the most important factor in what you'll pay in monthly payments.