Auto Lease Questions to Ask Your Dealer
What is Vehicle Leasing? How Does Leasing a Car Work?
Do you want to know what is vehicle leasing? or how does leasing a vehicle work, then you’re in good hands. Not everyone is familiar with all the benefits of leasing a car. There are, in fact, more than a few auto leasing alternatives available.
In general, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed time period. Auto dealers offer vehicle leasing as an another option to traditional auto purchase or financing. It is commonly utilized by companies when acquiring a company vehicle. In general, leasing costs less than buying, although there are several restrictions, such as vehicle mileage limits and customization agreements, that can determine whether it is better to buy or lease a vehicle.
Let’s examine our ten most frequently asked questions regarding vehicle leasing.
1) Is It A Good Idea to Lease a Car?
The benefits of leasing a car are unique. You cannot get them with other auto financing offers. Benefits like lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. For even more details on the benefits of auto leasing, our auto finance department is ready to answer all of your questions.
2) Leasing or Buying a Car – Which is Better?
Also, it is worth mentioning that some owners find high mileage leasing to be more beneficial in terms of financial safety and security than vehicle ownership. Statistically speaking, despite the overage fees you may pay when returning a high mileage leased vehicle, it is likely that you will come out ahead, compared to buying a car. High mileage causes a significant reduction at resale, but with leasing, it’s already taken in to consideration. Additionally, the more time you spend on the roads, the more susceptible to accidents you will be. Therefore, if or when that accident occurs on your own vehicle, you would receive wreck history on CarFax, as well as a resale/trade-in deduction for vehicle damage. With leasing, you are not responsible for the deduction in value from that accident.
3) 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 dealerships 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.
4) What Does It Cost to Lease a Car?
Most dealerships and manufacturers offer zero-down lease deals. Like any financial product there are varying factors that qualify or disqualify individuals from these types of leases. Factors like credit scores, credit payment history, etc. Just remember that paying nothing 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.
5) Can One Get a Deposit Back When Vehicle Leasing?
Typically a deposit is refundable at the termination of a lease. This assumes that all the leasing contract specifications have been met. Keep in mind that a deposit (a.k.a. a security deposit) is not the exact same thing as a down payment. A down payment is not refundable but security deposits typically are. Also note that some leases require non-refundable deposits. Therefore, read your lease agreement diligently and ask as many questions as you have before you sign on the dotted line
6) Can You Purchase The Car You Are Leasing?
Most auto leasing contracts have buy-out clauses in them in case you fall in love with your car and would like to buy it. Please note that the purchase price of the car may vary. This depends on the residual value of the vehicle when the lease agreement has expired. There are also options to purchase your leased vehicle prior to the completion of the contract. For this, however, you must speak with a leasing representative. Only they can provide this exact info and take care of any early termination fees that may apply.
7) Is It Possible to Lease a Car with Bad Credit & Zero 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.
8) What Credit Score Do I Need To Lease a Car?
In general, credit score lower than 619 is classified as “subprime”. While a subprime borrower won’t typically be 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 utilize to improve your credit score such as apply for too many loans, employment history, and consistent on-time payments.
9) Can I Turn In My Leased Vehicle To A Different Dealer?
Typically 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 a leased car into any other brand of dealership. You can, however, turn your leased Honda into any authorized Honda dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
10) Does A Car Lease Include Maintenance?
Of all the benefits of leasing a car, maintenance benefits are typically the most popular. Of course, specifics may vary within specific lease contracts, but most leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include fluid and filter changes, regular tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.
Contact a Car Leasing Expert Today
If you have more questions about vehicle leasing or our current offers, then contact us today. Our team of highly knowledgeable car leasing agents are standing by to respond to all your questions.
