Top Car Leasing Questions Answered
How Does Vehicle Leasing Work? What is Car Leasing?
If you're wondering what is car leasing, or how does leasing a vehicle work, then you're in good company. Some of us may not be familiar with all the pros and cons of leasing a car. There are, in fact, a good number of auto leasing options available these days.
In general, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed period of time. Many car and truck dealers offer vehicle leasing as an alternative to traditional auto purchase or financing. It is commonly utilized by businesses when acquiring business vehicles. In general, leasing a car costs less than buying, although there are several restrictions, such as mileage limits and non-customization agreements, that can determine whether it is better to lease or buy a vehicle.
Today we are going to look at our ten most frequently asked questions regarding vehicle leasing.
Q.Leasing or Buying a Car - Which is Better?
The short answer to this question is: 'it depends'. If you drive a lot of miles annual and like to keep your vehicles for longer than five years, leasing won't be very beneficial for you. However, if you enjoy getting a new car every three to five years and have no interest in the trade-in/selling process of your current vehicle, you could be a prime candidate for an automotive lease. Basically, the difference between auto leasing or buying really comes down to your personal, automotive and financial priorities.
Q. Is It A Good Idea to Lease a Car?
There are many benefits of leasing a car that you just can't get with other auto financing offers. These benefits include not having to trade or sell an old car or truck, lower payments, and maintenance provisions. For more details on the benefits of auto leasing, our car finance department is waiting to answer all of your questions.
Q. Is There Such a Thing as Used Car Leasing?
Yes, you can lease a used car. This type of 'used car leasing' is a little known 'secret' among auto dealership but most do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with fewer than 48,000 miles on the odometer.
Q. What Does It Cost to Lease a Car?
Are you wondering how much it costs to lease a car? Well, the truth is that it's negotiable.If you're wondering how much does it cost to lease a car, the good news is that it's negotiable. Many manufacturers and dealerships offer zero-down lease deals. Like any financial product there are varying factors that qualify or disqualify individuals from these types of leases. Factors such as credit payment history, credit scores, etc. Just don't forget that paying zero down typically means bigger monthly payments. Vehicle leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Q. Can You Buy The Car You Are Leasing?
The majority of auto lease contracts have buy-out clauses in them in case you fall in love with your vehicle and decide to purchase it. Keep in mind the purchase price of the vehicle may vary. This depends on the residual value of the vehicle after the lease agreement has expired. There are also options to purchase your leased car before the contract has been fulfilled. For this, however, you must speak with a financing representative. Only they can provide these buy-out details and take care of any early termination fees that may apply.
Q. Can One Get a Deposit Back From Car Leasing?
Typically a lease deposit is only refundable at the end of a lease. This assumes that all the leasing contract requirements have been met. Please note that a deposit (a.k.a. a security deposit) is not the exact same thing as a down payment. Down payments are not refundable but security deposits typically are. It is important to note some leases require non-refundable deposits. Be sure to read your lease agreement carefully and ask as many questions as you have before you sign on the dotted line.
Q. Is It Possible to Lease a Car with Bad Credit & 0 Down?
While it is not impossible, it is difficult to lease a vehicle if you have a poor credit rating and no money for a down payment. Most zero-down lease offers require a healthy credit rating. But don't worry, there are plenty of options available for car shoppers with less-than-stellar credit scores. To explore your leasing options, simply contact our financing team.
Q. What Kind Of Credit Score Do You Need To Lease A Car?
In general, credit score of 619 or lower is classified as "subprime". While this type of credit isn't automatically declined, a credit score lower than 619 means you will most likely have to pay a higher interest rate and/or down payment. Luckily, there are a lot of steps you can take to improve your credit score such as employment history, multiple loan requests, and consistent on-time payments.
Q. May I Return My Lease Vehicle to a Different Dealership?
Generally speaking, yes, you can trade in your leased vehicle at a different dealership. It must, however, be an authorized dealership for the vehicle manufacturer. It's probably obvious, but you can't turn your Audi into a Hyundai dealership. But, you absolutely can turn a leased Ford, for example, into any authorized Ford dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
Q. Is Maintenance Included With My Car Lease?
Maintenance provisions are one of the most popular benefits of leasing a car. Of course, specifics will vary within individual lease contracts, but almost all leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include fluid and filter changes, normal tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.