Saving Money on Car Leasing - Part 1 - Getting A Great Deal
Welcome to Saving Money with Andrew!
I’m back from a five-month break after I felt I’d run out of good post ideas, and didn’t just want to rehash old posts. Going forward, I plan an irregular schedule, with posts only when I have a particularly great or interesting money-saving experience.
Saving Money on Car Leasing - Part 1
Car shopping can be fun, but it can also be complicated, unpleasant, and financially risky. 19 months ago, we leased our first car (a 2023 Honda CR-V), and I made nearly every mistake possible. Despite significant research and learning how leasing works, we got a bad deal.
A few weeks ago, we decided to lease another car. We needed a third row, and considered options from the Honda Pilot to the Volvo XC90. After visiting dealerships and taking a few test drives, we settled on a “mild hybrid” 2025 Volvo XC90 B6. We liked the size, safety features and comfort and got a price quote from our local dealer.
But I knew we could do much better, and after many unpleasant experiences negotiating with car dealerships, I didn’t want to go through the process again. So, I decided to use a lease broker to find a deal on our behalf and handle everything.[1]
About an hour after submitting the broker’s online contact form, I received a far better quote on the XC90, with total payments over $1200 less than the dealer’s offer (net of the broker’s fee), and all other terms substantially identical.[2]
But then things got interesting. The broker suggested I consider the normally much more expensive Volvo XC90 T8 “plug-in hybrid”. Despite having a battery and a superior engine (455hp vs 295hp), the monthly payments after incentives were significantly lower![3]
And compared to the next-best offer I could find, the total payments were over $2600 less over the life of the lease, with no money down other than taxes and fees. We happily accepted the deal.
We are paying only modestly more for our new Volvo XC90 than for our Honda CR-V, which speaks to how good a deal this was (and how bad a deal we got on the CR-V).
Even better, we saved an enormous amount of time and hassle. The deal was done via text message and e-signed documents, with the only in-person work being about an hour to pick up the car at a nearby dealership.
It felt strange to send a scan of my driver’s license and pay the taxes and fees to a broker I hadn’t even spoken with on the phone, but I was comfortable because I worked with a large, established lease broker with plenty of reviews and referrals and made all payments via credit card (maximize those rewards!), offering some protection.[4]
From start to finish, the process took just three business days, with no in-person waiting or unpleasant negotiation.
Were there any disadvantages? The broker charged a $699 fee, which is a lot but I thought very fair given the money and time savings. Other than that, the entire process was painless, kind of fun, and provided some great material for a SMwA post.
In Part 2, I’ll talk more about lease brokers work, how they’re able to get great deals, and why it’s worth considering one.
And now, Andrew’s pick(s) of the week:
Was The Day I Put $50,000 in a Shoe Box and Handed It to a Stranger a true story? The always-interesting Patrick McKenzie put the story to the test with some amazing detective work. The answer? Probably!
Also:
As a nearly middle-aged dad myself, I’ve been enjoying the Middle Aged Dad Jam Band, featuring the hilarious actor Ken Marino. His Islands in the Stream duet with fellow Veronica Mars alum Kristen Bell is really good!
The Cleverlys’ bluegrass take on Walk Like An Egyptian never gets old.
Un Village Français is a gripping World War 2 period drama, free on ad-supported Plex or on ad-free Kanopy, a free service offered through many local libraries (which I discussed in Saving Money on TV and Streaming Services).
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.
[1] Auto lease brokers help you lease a car by connecting you with a dealership with a pre-negotiated deal.
[2] In each case, I compared monthly charges on a 36 month lease with 10,000 miles per year, subtracting the broker’s fee from the difference to estimate the net savings. Ultimately, we went with a 24 month lease and saved even more, as surprisingly the monthly payment on a 24 month lease was significantly lower.
[3] This was because the T8 was eligible for an additional $7500 in incentives (the lessor could claim a tax credit and passed it along as a discount), as well as other discounts.
[4] I used Auto Ninjas, but there are many good brokers out there. Still, be extremely careful when choosing a broker because you’ll be entrusting them with personal info and paying them fees. I chose Auto Ninjas because I could find many testimonials for them on the Leasehackr forums. As always, this is not an advertisement—I will never charge for this newsletter or accept any advertising.