In a 1 year car lease, what you are basically doing is to pay for the depreciation of the car for the one year period you are using it. Depreciation is nothing but the difference between the value of the vehicle when the lease starts and its value when the lease period of one year comes to an end. Different models of cars have different depreciation rates. If you choose the vehicles with the lowest depreciation rates, you can have the best deals. You should negotiate with the company and agree upon the lease price which is otherwise called capitalized cost. This may consist of certain fees like the acquisition fee. The depreciated value of the car at the end of the one year is the residual value and if the residual value is higher, your lease payments will be less. Sales tax is payable only on the monthly payments you make.