Written by Brett Kues
Sales Director | 25+ Years in Automotive Retail
Pischke Motors – La Crosse, WI
The Short Answer
Lease ads can look confusing because they are structured under strict federal and state disclosure laws.
When you see:
“$399 per month, $2,000 due at signing”
That does not mean $399 is your total cost.
It means part of the lease cost is paid upfront.
Understanding what’s included — and what isn’t — matters.
Why Lease Ads Look Complicated
Lease advertising is governed by:
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Federal Truth in Lending regulations
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Consumer leasing disclosure laws
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State-specific advertising rules
If a dealer advertises a monthly payment, they must also disclose:
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Down payment
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Term length
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Mileage allowance
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Security deposit (if any)
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Taxes and fees
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Total due at signing
Those disclosures often appear in fine print — not because dealers want to hide them, but because the law requires specific formatting.
What “Due at Signing” Typically Includes
“Due at signing” usually includes:
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First month’s payment
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Down payment (capitalized cost reduction)
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Acquisition fee
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Registration/title fees
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Dealer service fee
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Taxes (depending on structure)
Not all lease ads are structured the same way.
Two $399 leases can have very different upfront requirements.
Sign-and-Drive vs Down Payment Lease
Down Payment Lease
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Lower monthly payment
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Higher upfront cash
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Reduces amount financed
Sign-and-Drive Lease
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Higher monthly payment
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Minimal upfront cash
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More rolled into payment
Neither is “better.”
It depends on whether you prefer lower monthly cost or lower upfront out-of-pocket expense.
Mileage Allowance Matters
Most advertised leases are based on:
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10,000 miles per year
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12,000 miles per year
Exceeding mileage limits results in overage charges.
Always confirm:
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Annual mileage allowance
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Per-mile penalty
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Lease-end options
Driving habits should match lease structure.
Why Wisconsin and Minnesota Ads May Look Different
In some neighboring markets:
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Dealers may advertise payments including conditional rebates
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Some states allow different rebate structures in advertising
In Wisconsin, dealers must follow state-compliant disclosure standards.
This can make one state’s ad look cheaper — even if the real transaction isn’t.
Advertising format does not always reflect total cost difference.
What Determines Your Actual Lease Payment
Your true lease payment depends on:
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Vehicle price
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Residual value
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Money factor (interest rate equivalent)
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Term length
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Mileage allowance
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Credit qualification
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Rebates you personally qualify for
The advertised payment assumes:
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Specific credit tier
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Specific term
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Specific structure
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Specific model
Individual results vary.
Why Transparency Matters
Lease confusion usually comes from:
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Not understanding what’s included upfront
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Comparing ads structured differently
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Not knowing rebate qualifications
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Ignoring mileage limits
A transparent lease explanation should clearly outline:
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Total due at signing
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Total of payments
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Purchase option at lease end
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Mileage terms
If those aren’t explained clearly, ask.
Common Lease Questions
Is a lease cheaper than buying?
Monthly payments are often lower, but you do not build ownership equity.
What happens at lease end?
You can:
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Return the vehicle
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Buy it for the residual value
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Lease another vehicle
Is money down required?
No. You can structure a lease with minimal upfront cash.
Is leasing good in Wisconsin?
Leasing can work well for drivers who:
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Stay within mileage limits
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Prefer driving newer vehicles
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Want lower monthly payments
What We Do at Pischke
When structuring leases, we:
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Show multiple payment options
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Explain money down vs sign-and-drive
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Clarify rebate eligibility
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Break down mileage structure
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Provide clear written disclosures
The goal isn’t to create the lowest advertised number.
It’s to create a lease structure that fits your real driving habits and budget.
Final Thought
Lease ads are not tricks.
They are regulated financial disclosures presented in a condensed format.
Once you understand:
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What’s due upfront
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What’s included in payment
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What happens at lease end
Leasing becomes straightforward.
Clarity removes confusion.
About the Author
Brett Kues is the Sales Director at Pischke Motors in La Crosse, Wisconsin, with over 25 years in automotive retail leadership. He oversees lease structuring, compliance standards, and customer disclosures with a focus on clarity and long-term financial transparency.
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