What are typical terms and mileage for car leases

**Car leases typically involve fixed monthly payments over a specified period, accompanied by specific mileage restrictions.** Here's a breakdown of the common terms and mileage limits:

1. **Length of Lease**: Leases are usually 24 to 48 months (2 to 4 years), with 36 months being the most common.
2. **Mileage Limits**: Standard leases come with annual mileage caps ranging from 10,000 to 15,000 miles. Exceeding these limits often incurs additional fees, which can be avoided by opting for a high-mileage lease. High-mileage leases can allow up to 20,000 to 30,000 miles per year, but at a higher monthly cost.
3. **Monthly Payments**: Lease payments are calculated based on the anticipated depreciation of the vehicle over the lease term, rather than the full purchase price of the car. This means the monthly cost is lower than if you were buying the vehicle outright.
4. **Acquisition Fee**: A one-time fee, often ranging from $595 to $1,095, to arrange the lease, which is not negotiable.
5. **Down Payment**: An initial payment that includes fees, credits, and rebates, which can be reduced by trading in another vehicle.
6. **Buyout Price**: The amount you can purchase the vehicle for at the end of the lease, including any related fees.
7. **Insurance**: Full-coverage auto insurance is required throughout the lease term, as you do not own the vehicle and are responsible for its maintenance and insurance.

Understanding these terms and conditions is crucial when deciding if a lease is suitable for your driving habits and financial situation.